Rodney Martin, an attorney with the law firm Warner Norcross + Judd LLP, discussed cannabis banking regulations in a Crain's Detroit Business article.
The Financial Crimes Enforcement Network issued guidance in 2014 to banks and credit unions that choose to service cannabis businesses. The financial institution are obligated to verify where a marijuana business is licensed, monitor their accounts for unexpected growth in deposits, which may indicate illicit activity, and file regular monitoring paperwork to root out money laundering.
According to Martin, the paperwork obligations can be onerous. "When I meet with financial institutions thinking of getting into the business of serving marijuana, I stress that the due diligence and reporting obligations are significant and pose a real risk if not done correctly," he said in the article.
Crain's Detroit Business subscribers can read the full article here.
Warner's Cannabis Industry Group includes attorneys from more than a dozen different specialties to help businesses navigate this rapidly evolving area of law. Warner assists clients in licensing and regulatory compliance, investment guidance and security offerings, entity formation, real estate and zoning, environmental, labor and employment, insurance, tax, trademark, litigation and criminal defense.
The firm's cannabis resource page, including a video series on related topics, is available here.
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