To Bank or not to Bank — Compliance Considerations when Deciding whether or not to Bank the Cannabis Industry

Sessions

To date, more than 30 U.S. states have legalized marijuana for either medical or recreational use; however, cultivation, possession and sale of marijuana remains illegal on a federal level and banks are in a tough position when it comes to deciding whether or not to bank the cannabis industry. In this session, consider risks arising from maintaining accounts for existing clients who are now moving into the space or for clients who are now receiving payments in cash from Marijuana-Related Businesses (MRBs), or for neglecting to identify MRBs you may already be banking. Explore the various risks associated with banking the industry, including a history of regulatory guidance around the cannabis industry and the recent rescission of the “Cole Memorandum” to facilitate decision-making about policies appropriate for your institution.

Laurel Sykes
SVP, Chief Risk Officer
Montecito Bank & Trust