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Prohibiting customers from being MRBs

Question: 
Is it legal for us to have a policy of prohibiting customers from engaging in marijuana-related businesses?
Answer: 

MRBs are not a protected class under anti-discrimination laws. You can choose to bank them, or not bank them. It’s a business decision. You don’t have the power to directly prohibit a customer from engaging in a particular type of business, but you could have a contractual provision in a loan agreement that makes it an even of default if they do so engage. Your deposit account agreements are already written in such a way that they allow you to “quit” a customer for any reason or no reason (as long as its not an illegally discriminatory reason).

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Learn more about Mary Beth Guard’s webinar Hemp, CBD, Marijuana and Your Bank -- 2019 Status Update

First published on 06/16/2019

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