Non-Member


Friday, February 14, 2014

Federal Guidance Provided To Permit Financial Institutions To Provide Services To Marijuana-Related Businesses

Federal Guidance Provided To Permit Financial Institutions To Provide Services To Marijuana-Related Businesses

Due to the fact that 20 states and the District of Columbia have legalized certain marijuana-related activity, the U.S. Department of Justice Deputy Attorney General James M. Cole has issued a memorandum, known as the Cole Memo, which provides guidance to federal prosecutors concerning marijuana enforcement under the CSA. The Cole Memo guidance applies to all of DOJ’s federal enforcement activity, including civil enforcement and criminal investigations and prosecutions, concerning marijuana in all states. The Cole Memo reiterates Congress ’s determination that marijuana is a dangerous drug and that the illegal distribution and sale of marijuana is a serious crime that provides a significant source of revenue to large-scale criminal enterprises, gangs, and cartels. The Cole Memo notes that DOJ is committed to enforcement of the CSA consistent with those determinations. It also notes that DOJ is committed to using its investigative and prosecutorial resources to address the most significant threats in the most effective, consistent, and rational way. In furtherance of those objectives, the Cole Memo provides guidance to DOJ attorneys and law enforcement to focus their enforcement resources on persons or organizations whose conduct interferes with any one or more important priorities known as the Cole Memo priorities” found in the Cole Memo, as referenced by The Financial Crimes Enforcement Network (“FinCEN”). All of this basically relates to issuing guidance to clarify Bank Secrecy Act (“BSA”) expectations for financial institutions seeking to provide services to marijuana-related businesses. This FinCEN guidance clarifies how financial institutions can provide services to marijuana-related businesses consistent with their BSA obligations, i.e. due diligence.


Reference: The Banker Daily Briefing

No comments:

Post a Comment