Cooperative TuCoop Seeks Legal Validation for Account Closure Amid Money Laundering Allegations

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The TuCoop Cooperative Seeks Validation to Close Account of Cannabis Business

The TuCoop cooperative has filed a lawsuit in the United States District Court for the District of Puerto Rico, requesting validation to close the account of 3G Green Gold Group LLC (3G) due to suspicious financial activities.

A Rare Opportunity to Examine the Financing Operations of the Medical Cannabis Business

The lawsuit filed by TuCoop against 3G sheds light on the delicate financing operations within the medical cannabis industry in Puerto Rico. Despite the legalization of cannabis for medicinal purposes, federal regulations still classify it as a controlled substance. This restricts cannabis businesses from making electronic transfers through the Fedwire system, resulting in most transactions being conducted in cash.

TuCoop’s Commitment to Transparency and Compliance

TuCoop, a credit union providing services to the medical cannabis sector, operates under an orderly and transparent process. However, it is also obligated to identify and report any suspicious activity from its clients, as required by local and federal regulatory frameworks.

Controversy Surrounding New Payment Processing Systems

The recent lawsuit filed by TuCoop follows a controversy that emerged in February regarding the use of new payment processing systems in the medical cannabis industry. These systems aim to conceal the nature of transactions related to the sale of cannabis, raising concerns about potential money laundering schemes.

Industry Response and Legal Consultation

The statements made by TuCoop regarding the payment processing systems have sparked a response from the president of the Members of the Medicinal Cannabis Industry (MiCaM), who expressed concerns about the implications for the entire industry. Legal consultations are being considered to address the situation and potential actions against TuCoop.

3G Green Gold Group LLC and Suspicious Transactions

TuCoop’s lawsuit specifically targets 3G Green Gold Group LLC, an entity associated with BWell and NextGen dispensaries. The cooperative has detected suspicious transactions and has requested explanations from 3G, which have not been provided. Furthermore, 3G has threatened legal action if its account is closed.

The Scheme to Circumvent Financial Regulations

TuCoop alleges that 3G has created a scheme, potentially with the assistance of third parties, to bypass the ban on cannabis-related transactions imposed by the Federal Reserve Bank. This scheme involves using the Fedwire system to transfer funds from BWell dispensaries to accounts that appear unrelated to the marijuana business. By disguising the true nature of these transactions, 3G aims to evade detection and approval by financial institutions in Puerto Rico.

Processing System and Corporate Origins

TuCoop reveals that the processing system used by 3G is provided by New Line Processing PR LLC, a company established last year. When a patient pays with a credit or debit card at a dispensary, the transaction is not identified as a cannabis purchase but as a payment to an entity based in Florida. The funds are then transferred to a World Xchange account at Waybank Colorado, which maintains a subaccount in the name of the Puerto Rico dispensary. Both Waybank and World Xchange have corporate origins in jurisdictions associated with opaque international financial transactions.

About the Author

Journalist and lawyer with 25 years of experience. Co-founder or member of the founding teams of NotiCel, the Center for Investigative Journalism, Red 96, Primera Hora, and El Nuevo Día Interactivo.


E likely to take place in order to address the challenges faced by cannabis businesses in Puerto Rico and find a solution that balances transparency and compliance with federal regulations. The outcome of the lawsuit filed by TuCoop against 3G will provide insight into the current state of financing operations within the medical cannabis industry and could potentially impact the industry as a whole.

How might the outcome of TuCoop’s lawsuit against 3G affect the medical cannabis industry’s financing operations, and what steps can businesses take to prepare for potential changes in this area

The outcome of TuCoop’s lawsuit against 3G could potentially have significant implications for the medical cannabis industry’s financing operations. Here are a few ways it could impact the industry:

1. Investor confidence: The outcome could affect investor confidence in the medical cannabis industry. If TuCoop wins the lawsuit, it may set a precedent that could encourage more investment in the industry. Conversely, if 3G wins, it may create uncertainty and make investors more reluctant to provide financing.

2. Access to capital: Depending on the outcome, the availability of capital for medical cannabis businesses may be affected. If TuCoop wins, it could lead to increased financing options, such as loans or investment funds specifically targeting the industry. A win for 3G, on the other hand, may restrict financing options and make it more difficult for businesses to secure funding.

3. Regulatory environment: The outcome could also influence the regulatory environment for medical cannabis businesses. If TuCoop is successful, it may push regulators to adopt more favorable policies and regulations towards the industry. Conversely, a win for 3G may encourage regulators to impose stricter regulations, potentially making financing operations more challenging.

To prepare for potential changes in this area, businesses in the medical cannabis industry can take the following steps:

1. Diversify financing sources: Businesses should consider diversifying their financing sources to reduce reliance on a single provider or type of funding. This could involve exploring alternative financing options such as private investors, crowdfunding, or partnerships.

2. Strengthen financial management: It is essential for businesses to establish strong financial management practices to maximize their chances of securing financing. This includes maintaining accurate financial records, implementing robust accounting systems, and demonstrating a solid understanding of the financial aspects of the business.

3. Monitor legal developments: It is crucial to closely monitor legal developments, including the progress and outcome of TuCoop’s lawsuit against 3G. This will help businesses stay ahead of potential changes in the regulatory and financing landscape, allowing them to adapt and adjust their strategies accordingly.

4. Establish relationships with industry associations: Building relationships with industry associations and advocacy groups can provide businesses with access to valuable resources and information. These organizations can help navigate potential changes and offer guidance on financing options specific to the medical cannabis industry.

5. Explore international markets: If the outcome of the lawsuit restricts financing options domestically, businesses can consider exploring international markets where regulations may be more favorable. This could involve seeking financing from foreign investors or expanding operations to countries with more supportive regulatory environments.

In summary, the outcome of TuCoop’s lawsuit against 3G has the potential to significantly impact the medical cannabis industry’s financing operations. To prepare for potential changes, businesses should diversify financing sources, strengthen financial management practices, monitor legal developments, establish relationships with industry associations, and explore international markets.

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1 comment

Alaia June 19, 2023 - 1:17 pm

This article highlights the lawsuit filed by TuCoop against 3G Green Gold Group LLC and the potential implications for the medical cannabis industry’s financing operations. It sheds light on the challenges faced by cannabis businesses in Puerto Rico and the need for transparency and compliance. The outcome of the lawsuit could impact investor confidence, access to capital, and the regulatory environment. Businesses in the industry should consider diversifying their financing sources to prepare for potential changes.


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