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#2121587 - 03/10/17 09:25 PM Marijuana related busnesses
Beachbum, CRCM Offline
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Joined: Dec 2006
Posts: 499
Knee Deep in Regs
I can't believe PA bankers are not blowing-up this forum with questions about banking marijuana related businesses yet smile
let me start the conversation.
For those banks that have already had the conversation with their boards, what questions will you be asking at the time of account opening to determine the level of risk for businesses that may have an in-direct interest or revenue stream from licensed marijuana related businesses?
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#2121678 - 03/13/17 03:21 PM Re: Marijuana related busnesses Beachbum, CRCM
RockChucker, CAMS Offline
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Joined: Jul 2013
Posts: 1,700
The Country
Not from PA but our state also has made medical marijuana legal but since it is still illegal according to federal law and we are a federally regulated bank we have chosen to not bank marijuana related businesses. Why go through the brain damage, extra work, and potential legal risk?
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#2121680 - 03/13/17 03:46 PM Re: Marijuana related busnesses Beachbum, CRCM
Beachbum, CRCM Offline
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Joined: Dec 2006
Posts: 499
Knee Deep in Regs
Thank you Rockchucker, A follow-up question- Do you make any determination at account opening as to whether a new customer has an indirect relationship with an MRB? (example, payroll company that provides payroll service for MRB employees)
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What we think, we become.
Buddha

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#2121681 - 03/13/17 03:53 PM Re: Marijuana related busnesses Beachbum, CRCM
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
That really gets pretty hard. What about Home Depot or Walmart that sells fertilizer or the mom and pop hardware store that sells drip irrigation. How in the world are you going to slice and dice your other customers that deeply.
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#2121682 - 03/13/17 03:56 PM Re: Marijuana related busnesses Beachbum, CRCM
Beachbum, CRCM Offline
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Joined: Dec 2006
Posts: 499
Knee Deep in Regs
yes, that is one of the questions we are trying to answer. are other banks " dicing" based on percentage of annual income derived from marijuana related businesses?
_________________________
What we think, we become.
Buddha

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#2121753 - 03/13/17 07:21 PM Re: Marijuana related busnesses Beachbum, CRCM
RockChucker, CAMS Offline
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Joined: Jul 2013
Posts: 1,700
The Country
We don't typically dig into indirect relationships but if we happen to start getting lots of cash activity or some other odd activity we will look into it and make a determination at that time. Like Randy said, indirect relationships is really tricky. I try to remind myself that contrary to many examiners opinions we are not law enforcement.
_________________________
A successful man is one who can lay a firm foundation with the bricks others have thrown at him.
-David Brinkley

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#2121786 - 03/13/17 08:20 PM Re: Marijuana related busnesses Beachbum, CRCM
Beachbum, CRCM Offline
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Joined: Dec 2006
Posts: 499
Knee Deep in Regs
Thank you both.
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What we think, we become.
Buddha

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