Thought some of you might be interested in this article. It is an interesting thought.

File A SAR On State Government

Thanks Retread

This has been my contention as the guidance is faulty.

I love this sentence: "This raises key questions about the functioning of the current BSA framework: is it successfully targeting the sorts of criminal activity it was designed for, or is it starting to not make sense?"

That ship sailed a long time ago!

I'm disappointed that the last paragraph did not include the exact number of angels who can sit on the head of a pin.

I don't see this as a problem. The distribution and use of marijuana Is illegal. Taxing is a separate transaction and not illegal. By this logic a bank that has accounts for the IRS would have to report the IRS for collecting income taxes on illegal activities (which the IRS knowingly does).

The distribution and use of marijuana Is illegal. Taxing is a separate transaction and not illegal.


While this is true we should be filing SARs on companies that provide plant lights. hydroponic supplies and other items that are used in the production as well as payroll because these items are derived from the proceeds of illegal activity.

Is the assumption that all plant lights and hydroponic supplies are used for Marijuana cultivation? Is there a regulatory reference for this anywhere? I don't adhere to the practice of filing SARs are every possibly related industry. Why not file on Home Depot and Lowes as well since they sell the shovels, buckets, fertilizers, and work gloves. We also might want to file on the restaurant and grocery stores because the sell food to the workers.

I read the guidance as FinCEN directed banks to file on Marijuana related businesses, not their vendors. Marijuana money is going to trickle though the economy and we can't file SARs on everyone. Maybe we can.

I LOVE this article & argument! BSA (via FinCEN & the regulators) has gone completely out of wack. It seems they don't know what is truly helpful to law enforcement and the purpose CTRs & SARs are supposed to bring.

If I'm supposed to file SARs on indirect activities (payroll, hydroponics, etc) related to marijuana - why wouldn't I file on the state???