Other state departments of banking, particularly when dealing with BSA, are comparable. One banker I know offered FinCEN guidance to support his position and the examiner's response was "We are your primary regulatory agency; the only opinion that matters is ours." There is some variation between the states as to whether their divergent views on BSA are based on ignorance or arrogance.

Curious to know: For those FI's that have decided NOT to bank marijuana faciities, how are you handling personal accounts/loans for say the facility receptionist whose paycheck is coming from the facility. What about the president of the non-profit who wants to open a personal account or take out a mortgage? When I asked FinCEN for guidance, I was told that they had not received any guidance from the government (thought THEY were the government), and they had no position at this time. It was recommended that I check back in a couple of months...

exactly, one of my issues with the "guidance"

Hmmm, the person works for an enterprise that operates in violation of federal law, so we will not deal with him? That's kind of like corruption of blood where the sins of the father are visited on the son. Here, the sins of the employer are attributed to the employee; his income is derived from illegal activity.

Frankly, it's a better question than I wish it was... The government's equivocation is just going to make this mess larger and larger.

Even if I could hit every mark in the guidance I have no interest in being known in the community as the bank that caters to pot pushers. To me the BSA risk pales in comparison to the reputational risk.

Add another red flag: Your customer's crop exceeds his local sales; i.e. he is growing for export.

Legal Pot Smuggled Out of Colorado and Washington

Note the HIDTA is providing the statistics.

Thought some of you might find this interesting.

Banks Shy Away

Another opinion on the subject.

Medical Marijuana Banking Risks

"16 House Democrats from states legitimizing certain marijuana businesses wrote federal financial institution regulators Wednesday to urge implementation of recent guidance on how financial institutions can serve such businesses."

Read on here:
16 Dems press regulators on pot buinesses

A bunch of Politicians who do not understand the cost effective use of a banks employees do not decide if a bank is going to bank these business or not.

^^ True. But maybe, just maybe they can get the laws to change.

Still odd to think that this might the be battleground for state's rights issues.

Sixteen House Democrats from states legitimizing certain marijuana businesses wrote federal financial institution regulators Wednesday to urge implementation of recent guidance on how financial institutions can serve such businesses. In Wednesday’s letters, the lawmakers cited past statements by the regulators that they would consider whether to provide institutions guidance once the Justice Department and Financial Crimes Enforcement Network settled on an approach. Now that FinCEN has issued guidance, the lawmakers are pressing regulators to implement and “ensure your on-site examiners fully comply with the new standards.” - See more at: http://www.cuinsight.com/16-dems-press-regulators-on-pot-businesses.html#sthash.IoUgAI5l.dpuf


They are not even trying. If they get their way and the Regulators let banks/CU follow the guidance, which bank/cu is willing to open an account knowing that they need to file a SAR every 90 days?

Smaller CUs and Banks might be willing. The DFI already sent out a letter to all WA state chartered Banks and CUs.

"The Washington State Department of Financial Institutions and its Divisions of Banks and Credit Unions
will instruct its examiners to follow the guidance when conducting examinations of state chartered
financial institutions. We will be discussing this guidance with our federal regulatory counterparts and
will do our best to communicate any important information those conversations may produce."

I sure hope if they do that they charge these customers appropriately for the amount of time and risk they pose.

Here's the latest.

Senators Question FinCEN

Gee, that really sounds like they're posturing, doesn't it?

Again: There is no risk/reward analysis that would make banking marijuana dispensaries a reasonable decision and the government's equivocation is just going to make this mess larger and larger

Personal thoughts:

The "War on Drugs" is a fiasco and a horrendous flop. Our drug laws are part of the reason that Mexican drug cartels exist. If drugs were legal and regulated (and yes, taxed) in this country, the demand for illicit drugs would be reduced.

That 21 of the states allow the dispensing of marijuana for medical purposes and soon the number will grow to a majority, while the federal government continues to ban it illustrates the degree to which Washington is behind the curve on the issue.

Thought some of you might be interested in this article.

Banking Solution For Medical Marijuana

Reads more like a spoof than anything else...none of the principals even claim experience as a summer drive-in teller.

But wait, why not start your own financial investment business specifically for the purpose of investing in legal cannabis! Here is the article: KindBanking - First Marijuana Industry Financial Banking Solutions Company

And here is the link to KindBanking's website: KindBanking.com

I looked through the website for fun. It seems concerning to me that there was a lot of use of the words "will", "will provide", etc. I didn't see any disclaimer that thay are a bank "in organization" or any disclosure. Don't you have to be licensed to use the term "Bank"?

David was COO and Partner of Grasso Holdings.

Our BSA Officer keeps a list of prohibited and restricted businesses, broken down by line of business. The last bank I worked for had a similar list. Private message me if you'd like me to ask if he'd be okay with my sharing it.

From an article I just wrote, based on feedback from the BSA Officer, "Consumers that derive their income from the marijuana industry, should not be allowed to open a new account, given the DOJ stance that all funds derived from the marijuana industry are considered illicit. Likewise, if the bank discovered this type of relationship as part of ongoing customer due diligence and monitoring, the account would likely be closed."