Choosing to bank customers involved in the marijuana or hemp industry is not right or wrong. It is a risk decision that needs to be made by the Management and/or Board of your financial institution. Some financial institutions might find the risk to be outside their tolerance level and/or they may not have the staff and or resources for the increased compliance requirements, monitoring, etc. Other financial institutions may be fine with taking these on and comfortable in their ability to mitigate the risk. If you do bank such customers, there are a number of compliance requirements that can come into play. These include your Customer Identification Program (CIP), your Customer Due Diligence Program (CDD), Enhanced Customer Due Diligence (ECDD) and Beneficial Owners (BO). All of these are geared toward the ultimate goal of knowing your customer.
Kevin explains more in the video.
Published
2024/05/01
