banking – CaNorml.org https://www.canorml.org Fri, 03 Jul 2020 22:17:05 +0000 en-US hourly 1 https://www.canorml.org/wp-content/uploads/2020/08/cropped-favicon-1-32x32.png banking – CaNorml.org https://www.canorml.org 32 32 Countering the Myths of Cannabis Banking https://www.canorml.org/countering-the-myths-of-cannabis-banking/ Fri, 03 Jul 2020 17:47:24 +0000 https://www.canorml.org/?p=14486 dama-financial-canorml-photo

By Dama Financial

Myth 1: It is illegal for Banks to serve Cannabis-related Businesses because marijuana is illegal under federal law.

The Controlled Substances Act (“CSA”) makes it illegal under federal law to manufacture, distribute, or dispense marijuana. However, 10 states plus Washington D.C. have fully legalized marijuana and 33 states have legalized it for medical uses.

In 2014, the U.S. Treasury acknowledged banking relationships between financial institutions and legal cannabis-related businesses (CRBs) through its release of FinCen guidance. The guidance stated that serving CRBs was a risk-based decision, and expressed that thorough customer due diligence is a critical aspect of making an assessment and whether a CRB implicates the Cole Memo priorities or violates state law.…

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By Dama Financial

Myth 1: It is illegal for Banks to serve Cannabis-related Businesses because marijuana is illegal under federal law.

The Controlled Substances Act (“CSA”) makes it illegal under federal law to manufacture, distribute, or dispense marijuana. However, 10 states plus Washington D.C. have fully legalized marijuana and 33 states have legalized it for medical uses.

In 2014, the U.S. Treasury acknowledged banking relationships between financial institutions and legal cannabis-related businesses (CRBs) through its release of FinCen guidance. The guidance stated that serving CRBs was a risk-based decision, and expressed that thorough customer due diligence is a critical aspect of making an assessment and whether a CRB implicates the Cole Memo priorities or violates state law.…

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