RegulatoryFederal-Feb 14, 2014

FinCEN Issues Cannabis Banking Guidance Allowing Limited Banking Services

Source: FinCEN-Read original article

Key Takeaway

The Financial Crimes Enforcement Network issued guidance allowing financial institutions to provide limited services to state-legal cannabis businesses without automatic federal money laundering enforcement. The guidance enabled a small number of cannabis-friendly credit unions and banks to emerge but most major financial institutions continued to refuse cannabis accounts.

What This Means for Cannabis Businesses

Regulatory changes affect compliance requirements, licensing processes, and day-to-day operations for cannabis businesses. State-level rule changes can impact everything from product testing requirements to packaging standards to advertising restrictions. Operators should review their compliance procedures whenever new regulations take effect and work with consultants who specialize in their state's regulatory framework.

This analysis is based on reporting by FinCEN. Read the original article. CannaBizGuide provides original commentary and analysis - this is not legal or tax advice.