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,

Just so I understand - the MRB has not account with the Bank? And there have been no transactions by, to, or through the Bank?

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?

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.