The Treasury Department, through its Financial Crimes Enforcement Network, has released guidance for banks doing business with customers and companies that sell marijuana in states where the drug is legalized or allowed for medicinal purposes.
The FinCEN guidance clarifies Bank Secrecy Act expectations for financial institutions that choose to provide services to marijuana-related businesses and aligns the information they provide in BSA reports with federal and state law enforcement priorities. It explains that entering into such a relationship should be made by each financial institution based on such factors as its particular business objectives and the associated risks. In assessing those risks, customer due diligence should include verifying with state authorities whether the business is licensed and registered.
