The co-owners of a hemp store near Halifax say they think their bank is closing their accounts because of the products they sell.
Jean Jabalee and Bob Cole received letters from the Bank of Montreal (BMO) on Wednesday, giving them one month to close all personal and business accounts with the bank.
The letter sent to the couple and business partners had little information but said their personal or business activities fall outside of BMO’s “risk tolerance.” The letter didn’t explain what that “risk” is.
Cole said he thinks it’s code for the bank not wanting to serve businesses that sell marijuana-related products. The store doesn’t dispense marijuana but it sells items used to consume it, such as bongs and pipes.
“Some corporate person, a long way up the ladder, must think that because the word ‘hemp’ is in our business name, that that poses some kind of a problem.”
BMO didn’t respond to repeated requests for comment from Global News.
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The couple said they have never had problems with the police in their professional or personal lives and are in full compliance with the regulations governing their business.
If the company is starting to reject clients who are involved in pot-related industries, it’s the latest in a growing list of banks to do so. Last week it was revealed that Scotiabank and RBC are no longer providing banking services to companies with links to marijuana.
At the time Scotiabank said it was rejecting new customers and cancelling open accounts. In that same report, The Canadian Press said BMO also didn’t reply to media inquiries from them.
Couple had 25-year history with BMO
The bank’s surprise termination is upending the couple’s life. Jabalee said she’s now scrambling to transfer both her personal and business accounts to another bank and change all of her billing information for suppliers and utility companies.
“Its a big burden,” Jabalee said. “Its a lot of work for me, and a lot of unnecessary work.”
She said BMO’s decision to close her personal accounts in addition to the business account is adding insult to injury. “That’s an accusation that is unbelievable,” she said.
“I don’t conduct any risky business, that’s not who I am, I have a really good business, I have no need to do that.”
Cole said the bank gave them an option to appeal but he said after 25 years as a customer, he’s done. “I wont be doing any business with BMO anymore, that’s for sure.”
He and Jabalee are considering moving their business to Credit Union.
-With files from The Canadian Press
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