As more and more states continue to legalize marijuana (whether for recreational use or medical use), we are seeing that marijuana-related businesses (MRB) and financial institutions have to be prepared. That doesn’t just apply to institutions located in those states! It’s very possible that your institution borders a state that has legalized marijuana or maybe you have businesses or individuals that work for MRBs that seek out banking services at your institution (even if your state has not legalized it). This is a rapidly growing industry and the chances that your institution will not run into it is very unlikely. Regardless of whether or not your institution chooses to bank MRBs, you need to evaluate the potential risks facing your institution, understand your institution’s overall risk tolerance, and establish an appropriate system of controls. You might decide it’s too risky while others venture into it but either way you need to address it. Those that do will need to have enhanced policies, procedures, and training to ensure you are in compliance with BSA/AML requirements.
Kevin explains more in the video.
Published
2024/04/11