Our Examiner has recommended that our bank implement a written MRB Policy. We do not bank MRBs and have a short generic statement, but he would like to see this expanded. Does anyone have a sample willing to share? Thank you in advance.

I would just tell the examiner that it is already addressed - you don't bank them - there is no need for any further policy.

ask "expanded" as in "e x p a n d e d" as that seems to make more sense,

So, it doesn't pass the weight requirement?

Two philosophies exist. I prefer rlcarey's

The other is to throw him a bone. Ask him for specific suggestions as to content. If he has any, I'll be surprised. Then blow a little air into yours and get the board to adopt the change and go on to something that makes a difference.

If you post what you have I'll inflate it...

You can plagiarize the content of this article in your policy and have your last paragraph state that at this time, the bank does not bank MRB.

https://www.medicaljane.com/2014/02/22/a-brief-history-of-cannabis-business-in-the-united-states/

I think your examiner has too much time on his hands. But then again, I will never forget (or get back) the 20 minutes I spent on the phone with an OTS examiner who was not happy with the grammatical structure of one sentence in the bank's BSA policy.

I came across this article a while back. Honestly, it is going to become more and more difficult to define that line in the sand as more and MRBs become more mainstream. For example, say you have a large customer that has a business manufacturing food processing equipment that makes one or two sales to a company that manufactures edible cannabis products. Do you shut them down as a MRB? Are they truly an MRB because they have limited interactions with a true MRB? I can see where putting in some work defining this in advance would be a benefit rather than reacting to situations as they arise. This article kind of summarizes a methodology for defining different tiers of MRB's. I found it interesting.


http://mrbmonitor.com/wp-content/uploads...daySep_2016.pdf

Thanks all. thomasj, this article is very similar to the tiered style that our examiner suggested for our policy. Because we have dispensaries in our service area, we do need some sort of guidelines in place for those "indirect" MRBs, or PSPs that service them in some way.

And in that vein, every single utility company is a MRB since MB's purchase water and power services in every location they operate. How far down the rabbit hole do we all have to slide?

It's kind of like OFAC only worse. For instance, employees of an MB probably purchase gasoline in order to get to and from work. Does that make the gas station a MRB? What about the grocery store, the hardware store, the office supply store?

Yup, hence the tiered method. Sigh....

Well then, in states where marijuana is legal (either medical and/or recreational), then I suppose that EVERY business is an MRB however tangentially.

What a mess for a politically classified substance.

Hoping to get a better some of your thoughts on a scenario that was presented to me this morning and I haven't yet come up with a concrete response for the person who asked the question.

LLC is looking to get a loan for an apartment building. LLC has two "owners" 50/50 who will guaranteeing the loan. One owner is well known to be involved in the marijuana business. I know we can make the loan but am doubting we should make the loan. In this ownership structure, could the feds/law enforcement seize the apartment building? I'm thinking so but not 100%

What other arguments should be considered? If we made the loan could we require all the payments to not be made by cash?

Thanks!

Update:
I was able to convince management that it was in the banks best interest at the moment to avoid getting tangled up in a relationship like this.

Happy Friday!