Director General of Agriculture, Timothy Tumukon, says amendments to the law are needed to allow banks to open accounts for licensed Industrial Hemp and Medical Cannabis businesses in Vanuatu.
At present, banks are refusing to open accounts for licence holders, blocking the start of the projects.
Speaking before the Parliamentary Standing Committee on Economic and Foreign Policy , DG Tumukon said Parliament must pass an amendment this year to give banks the legal mandate to support the industry.
“Some businesses cannot operate because banks refuse to open accounts or process overseas transfers. We cannot force them now because they are private businesses. But if Parliament amends the law, we can require banks to allow these businesses to operate within the government framework,” he explained.
The Industrial Hemp and Medical Cannabis project has made progress over the past year, with seven licences already issued to companies.
The government has said the project is safe and will help boost Vanuatu’s economy, as licensed companies must have at least 10 years of international experience and meet strict requirements.
If fully operational, Industrial Hemp and Medical Cannabis could become a major new source of revenue for Vanuatu.
