The federal government is paving a way for banks to work with marijuana industry businesses.
This week, the US Justice Department and Treasury Department issued memorandums that have provided banks with an outline for how to legally conduct business with marijuana industry businesses.
The new rules require banks to verify that marijuana businesses are properly licensed by their state before pursuing a business relationship. Banks are then required to monitor the businesses for any financial violations and report suspicious activity to federal regulators.
Whether the new regulations for banks and marijuana industry businesses will work is yet to be seen.
Most likely, large commercial banks will quickly enter the industry, but smaller regional banks will likely stay away due to the fear of large fines from regulators.
These new regulations are intended to help marijuana industry transactions to “move from the shadows,” said Mrs. Calvery, director of the Treasury’s Financial Crimes Enforcement Network.
Even with these new federal regulations, many financial institutions are likely to remain cautious. Some banking industry experts have mentioned that nothing short of Congressional action will permit the banking industry to partner with marijuana industry businesses.
This new-found tolerance by the fed for legitimate state-run marijuana industries is a huge victory for the marijuana industry and banks.