Florida: bank closes political candidate's account over cannabis industry ties

Nikki Fried, candidate for Commissioner of Agriculture in the State of Florida, has had her campaign account closed by Wells Fargo Bank on the grounds that she has ties to the medical cannabis industry, which is legal in Florida.

She has, in fact, received donations from lobbyists who support medical cannabis and is herself campaigning for the expansion of the legal program in Florida. Her campaign team received a letter on August 3 notifying her that she had thirty days to transfer her funds before the account was closed. In anticipation, the candidate also closed her other accounts at Wells Fargo.

In favor of expanding the medical cannabis program

Nikki Fried is campaigning for the expansion of the medical cannabis program, the development of which has been rather chaotic since the 2016 vote, As a result, the program's director resigned last month. The candidate says she wants to honor the will of the voters, who had voted in favor of legalizing the medical use of cannabis with an overwhelming majority of 71 %.

At a press conference in Tallahassee, Nikki Fried denounced an «unprecedented» decision that exemplifies «the failure of our laws, institutions and politicians to respect patients, doctors and the will of the voters». If elected to the position of Commissioner of Agriculture, she will officially be in charge of the program and will indirectly have control over the state's banking industry, as it will fall to her to appoint the director of the Office of Financial Regulation. A power that may indeed worry the banks.

Justifying itself, Wells Fargo Bank said: «It is Wells Fargo's policy, due to federal law that states the illegality of the cannabis trade, although state laws differ, not to make its services available to cannabis businesses or activities related to this industry. We constantly review our banking relationships to ensure that we adhere to these strict regulatory guidelines».

It is true that the banking industry does not offer its services to the cannabis industry, as a precautionary measure, because of federal regulations. The candidate accuses a form of discrimination against an industry that is legal in the majority of states, a victim of «outdated federal law». She adds: «I don't touch the plant, I don't sell the plant, I don't produce the plant, I simply campaign for the expansion of medical cannabis, and that's why they closed my account».

If this is indeed the case, then it's an astonishing decision - banks aren't known for being overzealous, but it's also possible that the funds in question don't simply come from a lobby group and originate in profits generated by a cannabis company, which would then justify such a reaction. The candidate, for her part, claims to be a victim in the story, and seems to be hinting at a possible political manoeuvre.

Political maneuvering?

Nikki Fried denounces an injustice I wonder how many other accounts they haven't looked at? We know that across the country there are candidates who support and campaign for medical cannabis and they haven't seen their accounts shut down, nor have the law firms and lobbyist stores that have clients for medical cannabis. They've targeted me in particular.

Florida's political system is quite unique in the United States: it is based on a cabinet system whose members are independently elected. Their power equals that of the Governor in their respective areas, and they are therefore very important positions. The cabinet is renewed in elections scheduled for November. For the time being, it is totally Republican, as is the Governor. However, Nikki Fried is a Democratic candidate and, by running for a position crucial to the implementation of the medical cannabis program, with which voters are currently unhappy, she is indeed a threatening opponent. Wells Fargo Bank, for its part, has recently been the subject of’a scandal in-house.