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#2205024 - 02/04/19 09:35 PM CBD distributor versus Medical Marijuana
Kelly J Offline
New Poster
Joined: Apr 2015
Posts: 22
We are in Florida where medical marijuana is legal. I know that regardless of that we must file a SAR for any marijuana-related activity. Our FI policy states we will NOT bank an MRB.

I was reviewing wires and saw that a new business customer wired money to a dispensary. I googled the LLC and nothing really showed up. When I googled the DBA I found their website that is advertising the sale of low THC CBD.
In our CDD they stated they were a computer related business.

I have been researching CBD and MRB's and there is so much conflicting information. My first instinct is to close the account and file a SAR.

Anyone else had to handle this?

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#2205026 - 02/04/19 09:36 PM Re: CBD distributor versus Medical Marijuana Kelly J
RockChucker, CAMS Offline
Diamond Poster
Joined: Jul 2013
Posts: 1,700
The Country
I would close the account just on merit. If they are willing to lie to open the account, it is not a customer I want anything to do with.
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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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#2205028 - 02/04/19 09:52 PM Re: CBD distributor versus Medical Marijuana Kelly J
Susan Offline
Member
Joined: Mar 2018
Posts: 75
We had a similar case, where a new business customer said they were a moving company. Well, technically they were, because they were a transportation/testing company for medical marijuana in a state where it's legal. They lied to us at the time of account opening, and repeatedly when we questioned them about their activity. We closed the account. We have included CBD businesses in our MRB policy as businesses that we won't bank.

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#2205128 - 02/05/19 07:41 PM Re: CBD distributor versus Medical Marijuana Kelly J
Big Dog Offline
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Big Dog
Joined: Mar 2005
Posts: 2,659
Kennel
THC and CBD are very different. With the signing of the Farm Bill in December, Hemp can now be grown legally and is on par with growing corn or any other crop.

Based on my recent research, including some discussions with those much more knowledgeable in this area, CBD is from Hemp. Hemp may have some low level of THC, but not enough to have the effects of Cannabis plants and you could smoke a field of hemp and not get high.

However, if they lied to open the account, might not be the type of customer you would want. Give them 1 shot to come clean and give you what you need, and take advantage of the leverage and ask for more than necessary, with the agreement you can request updates at any time. If they don't conform, then it is real easy to close.
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#2205135 - 02/05/19 07:58 PM Re: CBD distributor versus Medical Marijuana Kelly J
RockChucker, CAMS Offline
Diamond Poster
Joined: Jul 2013
Posts: 1,700
The Country
One trick with dealing with CBD is there is CBD with THC and CBD without THC. I know people who use both. As a bank you need to be in a position to determine if the CBD has elevated levels of THC or not.
_________________________
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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#2205149 - 02/05/19 09:17 PM Re: CBD distributor versus Medical Marijuana Kelly J
TryingtoComply Offline
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Joined: Apr 2013
Posts: 2,199
The West
RockChucker is correct. I read somewhere that if a crop was grown to be hemp and was later discovered to have THC above .03% it would have to be destroyed.

Any bank considering banking businesses involved with cannabis should have their program reviewed by legal counsel to ensure that the bank is protected. There has been a lot of publicity regarding the Farm Bill and hemp no longer being classified as a schedule I drug. But there are still state programs. It's important to understand your state's laws.

As for the original post - I would close this account immediately. Dishonest customers are not worth it.
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#2205213 - 02/06/19 04:47 PM Re: CBD distributor versus Medical Marijuana Kelly J
Kelly J Offline
New Poster
Joined: Apr 2015
Posts: 22
Thanks for all the input. We did close the account. I have done quite a lot of research myself and banking a customer that sells CBD is not something we want to risk. As more places begin to sell we may have to rethink that stand but for now no.

Now I am trying to figure out if a SAR is warranted if the $ is under the $5,000 threshold.

This is a pretty good read and kind of made up my mind if anyone else is interested.
https://www.forbes.com/sites/monazhang/2018/04/05/no-cbd-is-not-legal-in-all-50-states/#717e7d04762c

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