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#2251321 - 03/26/21 06:07 PM Potential MRB and SAR filing
Megaman Offline
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Joined: Jul 2017
Posts: 110
Good Afternoon,

Is a Bank required to file a SAR on a customer that was identified for getting pre-approved for a Marijuana license in a state where the state has legalized it? The Bank has a customer that was identified for getting pre=approved for a marijuana license to be a grower. The Bank has a policy not to bank these customers. The customer is not growing the marijuana as of yet just got pre=approved for the license. The Bank has made the decision not to continue the Banking relationship with the customer. There has been no marijuana related transactions flowing into or out of the Bank. Are we required to file a SAR? If so for what reason?

Thank you,

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#2251323 - 03/26/21 06:17 PM Re: Potential MRB and SAR filing Megaman
ACBbank Offline
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ACBbank
Joined: Jul 2006
Posts: 3,849
New York City
Just so I understand - the MRB has not account with the Bank? And there have been no transactions by, to, or through the Bank?
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#2251359 - 03/29/21 12:58 PM Re: Potential MRB and SAR filing ACBbank
Megaman Offline
100 Club
Joined: Jul 2017
Posts: 110
That is correct. They started out as a real estate management company. Now they will becoming a grow of marijuana. No marijuana related transaction, except for the payment for the license, as come in or out of the account. I am not sure if this should or requires a SAR. Any thoughts?

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#2251369 - 03/29/21 02:16 PM Re: Potential MRB and SAR filing Megaman
ColoradoAML Online
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Joined: Mar 2018
Posts: 191
The SAR requirements (criminal activity over $5k with subject, $25k without...) are the same for MRBs as they are for everyone else, so if you can't identify marijuana-related transactions attributed to the customer, you don't need to file. I would recommend reviewing the account carefully to be sure they didn't slip something by you and document the review if you haven't already done so. You could always file a voluntary marijuana termination SAR, but if they didn't do any transactions I don't think you'd be telling law enforcement or anyone else anything they didn't already know through the state registration.

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