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#2253359 - 05/03/21 03:42 PM Existing loan becomes Marajuana related business
T42 Offline
Joined: Feb 2014
Posts: 50
Our board has chosen to not bank MRBs at this time since it's still illegal at the Federal level. At a recent seminar, the topic came up - what if an existing loan becomes an MRB? For instance, a strip mall owner rents to an marijuana store? or a commercial building owner rents to someone to be a warehouse for marijuana products waiting to be distributed? He suggested that we include language in our loan docs going forward that we can recall the loan if it becomes an MRB. Anyone done this and know if LaserPro has such language?

And do you agree that even though we say we don't bank MRBs - if this would happen, we would still be liable for the reporting anyway - correct?
"Whatever you do, work at it with all your heart, as working for the Lord, not for human masters" Colossians 3:23

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#2253371 - 05/03/21 06:01 PM Re: Existing loan becomes Marajuana related business T42
ColoradoAML Offline
100 Club
Joined: Mar 2018
Posts: 241
If you bank a commercial landlord, and they rent property to an MRB, that does not make the landlord an MRB as well under FinCEN's guidance. If your BSA program does define MRBs in a way that includes the landlord in the definition, and that you don't bank them, then I'd suggest you either address how you'll handle the scenario in the loan docs or in the BSA program.

If you bank a MRB, whether intentionally or not, then you're obligated to report consistent with 2014-G001. Again though, if your definition of an MRB and FinCEN's differ, then there may be cases where your reporting obligations don't line up.

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