The Financial Crimes Enforcement Network of the U.S. Department of the Treasury (FinCEN), issued a Marijuana Banking Update Report for the period ending March 31, 2017. Back in January, I wrote about a bi-partisan group of U.S. Senators urging FinCEN to issue updated guidance for marijuana related businesses (MRBs). While FinCEN has not issued any additional guidance, the report, does indicate an increase in the number of financial institutions’ comfort level in banking money from MRBs.
By the end of October 2016, 301 banking institutions were providing services to MRBs (less than 3% of the nation’s 11,954 federally regulated banks and credit unions). The current report shows that number slightly increased to 368 since the end of March. For the same period, 28,651 suspicious activity reports (SARs) were filed for MRBs.
FinCEN’s guidance for MRBs, require financial institutions to file SARs for MRBs indicating one of three categories:
In April, Congress introduced “The Secure and Fair Enforcement Banking Act (SAFE Banking Act),” to allow unrestricted access to banking services for state legalized MRBs. The bill remains in committee for review.
For additional information contact a member of the Medical Marijuana Practice Group.
June 13, 2017
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