The bank has made the decision to not bank marijuana businesses. Struggling with wording of putting this in the BSA Policy. Should I get into the law or just simply state as previously stated on BOL...

"While medical marijuana-related businesses (MRBs) are legal in the State of Florida, it is still illegal at the Federal level. The bank will not knowingly provide services to customers whose businesses operate in violation of state or federal law."

Would anyone be willing to share their policy on this?
Thanks.

Our policy reads similar to what you are proposing.

We have an examiner who is a big fan of marijuana so we opted to insert " at this time ABC Bank has chosen to not bank any marijuana related businesses....

Not to exclude others, but your examiner is a moron.

LOL! No arguing here.

I am in process of researching the impact of opening accounts for businesses that sell CBD oil. Unlike Medical Marijuana which is legal in Florida and has a framework for licensing, I can't find any information about licensing for these types of business. To compound the issue the 2018 Farm Bill ensures that any cannabinoid (set of chemical compounds found in the cannabis plant) that is derived from hemp is legal, if and only if, that hemp is produced in a manner consistent with the Farm Bill, associated federal regulations, associated state regulations and by a licensed grower. All other cannabinoids produced in any other setting, remain a Schedule I substance under federal law.

That being said, I was wondering if other banks addressed this in their policy and if so, how?

Any takers?

Here in IL, I'm also in the process of assembling background to present to the various bank Boards on industrial hemp. IL passed an Industrial Hemp Act that was signed by the Governor 12/28/18 to regulate just about every aspect of production, from applying online for a producer's license to getting the 0.3%-or-less-THC product to (again, licensed) processors, and even reporting on last year's crop! The public comment & waiting periods don't expire until mid-March when the final vote will happen, so we're hoping that allows enough time for the feds to provide any guidelines on community bank due diligence. If the Boards give their thumbs-up, any Policy changes or additions will only come after 1Q 2019, but presumably in time for 2019 production.

2019 will be the first production year here, but I'd suggest looking into Wisconsin's industrial hemp history, they are 1 year ahead (2018 was their first year of regulated production). One of our subsidiaries that can't wait to jump in sent representatives to a local producer/processor's seminar last week (most subsidiaries are in counties that share a border with WI), and came back with feedback that many WI licensees weren't renewing their licenses for 2019. I don't know the reasons yet, but I will research that some more as time permits.