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Feds give banks the nod to do business with marijuana sellers
by Joseph Earnest February 14, 2014
Newscast Media WASHINGTON—The United States federal government has paved the way for banks to do business with drug dealers who specialize in selling marijuana by issuing guidelines that financial institutions should follow.
The Financial Crimes Enforcement Network (FinCEN), in coordination with the U.S. Department of Justice (DOJ), issued guidanceon Friday that clarifies customer due diligence expectations and reporting requirements for financial institutions seeking to provide services to marijuana businesses.
The guidance provides that financial institutions can provide services to marijuana-related businesses in a manner consistent with their obligations to know their customers and to report possible criminal activity.
"Now that some states have elected to legalize and regulate the marijuana trade, FinCEN seeks to move from the shadows the historically covert financial operations of marijuana businesses," noted FinCEN Director Jennifer Shasky Calvery. "Our guidance provides financial institutions with clarity on what they must do if they are going to provide financial services to marijuana businesses and what reporting will assist law enforcement."
In 2012, Colorado became the first state to approve marijuana for recreational use. Banks have since sought a mechanism to handle the newly approved marijuana drug-dealing business. Add Comments>>
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