Banks Deal With Marijuana Business

(Spring 2014) America’s banks are worried about legal weed. Attorney General Eric Holder reported that the Department of Justice’s recent release for banking guidelines related to marijuana was in part based on security concerns due to marijuana businesses accumulating piles of cash and keeping it on-hand. He publicly stated that lawful marijuana businesses should have access to the American banking system.

The guidelines require banks to verify their customers are properly licensed and gather information about the nature of the business. Banks are also required to be on the lookout for signs of illegal activity and report any suspicions. However, the guidelines do not protect banks from prosecution resulting from doing business with the industry. Without more clarity and some running time, many banks may continue to opt-out of working with these businesses.

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