If a trust account holds stock of a NYSE Marijuana Manufacturer/Distributor, and the bank's Trust Department is a federally regulated bank, is that stock subject to the reporting requirements of the Cole memo? I say yes, what do you say?

In such circumstances where services are being provided indirectly, the financial institution may file SARs based on existing regulations and guidance without distinguishing between “Marijuana Limited” and “Marijuana Priority.” Whether the financial institution decides to provide indirect services to a marijuana-related business is a risk-based decision that depends on a number of factors specific to that institution and the relevant circumstances. In making this decision, the institution should consider the Cole Memo priorities, to the extent applicable.
https://www.fincen.gov/resources/statute...ated-businesses

I may have answered my own question with the above guidance- but as always, its clear as mudd and appears to be the only guidance out there.

I would contact FinCEN to get a determination and document their response.

I will do that thank you bc.

I do not think I'd be filing a SAR based on how far removed your customer is from the MRB plant itself, but am curious to see what FinCEN would say about it.

From FinCEN

Incident# 326280 FinCEN SAR Form Questions/Regulations

Good day,

The SAR reporting structure laid out in FinCEN’s February 14, 2014 Guidance “BSA Expectations Regarding Marijuana-Related Business” remains in place, and that SAR reporting guidance with regard to financial institutions seeking to provide services to marijuana-related businesses applies to the specific facts and circumstance set forth in that document. Situations not specifically addressed in that guidance should be treated under standard SAR reporting rules and related guidance. The manufacture, distribution, and dispensing of marijuana is an illegal act in violation of federal law. FinCEN will continue to work closely with law enforcement and the financial sector to combat illicit finance. We will notify the financial sector of any changes to FinCEN’s SAR reporting expectations.

Regards,

FinCEN’s Resource Center

I'm a little confused. Did your trust department select this stock as an investment for the client?

Your trust department should have a policy around investing in MRBs.