The majority of states in America have legalized marijuana either for medical or recreational use—yet it remains illegal on the federal level. This poses regulatory challenges for financial institutions operating at the federal level and for some only operating in one state (because some are still subject to federal mandates, e.g., the Federal Deposit Insurance Act). Despite this disparate guidance, the multi-billion dollar U.S. cannabis market continues to expand.
Dow Jones partnered with Baker McKenzie and FIBA, a nonprofit trade association of financial institutions from Europe, the United States, Latin America and the Caribbean to examine the provision of financial services to U.S.-based marijuana-related business (MRBs) and the associated legal risks.
The report considers both the current regulatory environment and how it may evolve in the future and the results of a survey of compliance professionals at depository institutions. The survey included questions about their views on the regulatory environment, the policies of the institutions they work for and the screening techniques they apply. At a time when the legal landscape is unclear, this report can help banks understand what policies other institutions have in place to help benchmark their own procedures.
See the survey results here.
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