Knowing Your Customer When Banking Marijuana & Hemp

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.


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Published
2024/05/01

 

Kevin Edwards

Kevin brings years of experience and a unique perspective on regulatory matters to our clients. A self-proclaimed geek and accredited CRCM, Kevin is also a recovering attorney with experience as in-house counsel for a large regional bank and one of the leading national title insurance providers. For reasons unknown, Kevin decided to leave the safety and serenity of his desk job to seek fortune and glory as a wandering adventurer. Like a bank compliance version of Kwai Chang Caine, The Man with No Name or Don Quixote, he now travels the land seeking to help those in need and righting compliance wrongs, wherever he may find them. Kevin lives in Sioux Falls with his two children, who are surprisingly normal after having endured their father’s vivid imagination for their entire lives. He won’t admit to having any hobbies, because apparently “Regulations never sleep.” (While he does say this in his Batman voice, we’re pretty sure he’s joking.) From the looks of his Facebook page, he likes the outdoors and spending time with his large extended family (who seem like relatively normal people).

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Knowing Your Customer When Banking Marijuana & Hemp
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