All U.S. businesses are marijuana related businesses (MRBs). By “all” I mean everyone from Amazon to your local hardware store, with very few exceptions. Allow me to explain. Guidance on banking and MRBs Over eight years ago, the Financial Crimes Enforcement Network published the FinCen Memorandum of February 14, 2014 (“FinCen Memo”). FinCen is a Bureau
The year 2021 was an emotional roller coaster for marijuana banking. It culminated in the death of the Secure and Fair Enforcement (SAFE) Banking Act in the Senate, when it didn’t make it into the National Defense Authorization Act (“NDAA”). As a result, licensed cannabis businesses are left hanging high and dry (again) on broad
The hopes for better and increased marijuana banking, which were tied up in the Secure and Fair Enforcement (SAFE) Banking Act (a serious and common sense federal marijuana banking bill), are currently dashed since the SAFE Banking Act has been left out of the Senate’s changes to the National Defense Authorization Act (“NDAA“). The impact?
This week, the SAFE Banking Act’s long-awaited reintroduction finally happened, and by a bipartisan group of over 100 members of the House and 30 members of the Senate (and counting!). The legislation was first introduced in March 2019, and we’ve followed along ever since. This Act has now been passed by the House THREE times,
In a step towards achieving the goals of the SAFE Banking Act, California Governor Gavin Newsom approved Assembly Bill 1525, which importantly provides that banks, credit unions, and other financial servicers to cannabis businesses do not violate California law “solely by virtue of the fact that the person receiving the benefit of any of those
On Wednesday, July 8, 2020, a bipartisan group of sixteen state treasurers, led by Oregon Treasurer Tobias Read, sent a letter to congressional leaders requesting that the next piece of COVID-19 relief legislation include the SAFE Banking Act. The letter prominently cites both the well-known and new safety issues that come into play when forcing
Last week, the Financial Crimes Enforcement Network (FinCEN), issued new guidance (the “FinCEN Guidance”) for financial institutions working with hemp-related businesses. The FinCEN Guidance centers on due diligence requirements as related to the Bank Secrecy Act (BSA). This guidance follows closely on the new National Credit Union Administration (NCUA) guidance for federally-chartered credit unions, which
Last week, the National Credit Union Administration (NCUA) issued new guidance (“Guidance”) for federally-chartered credit unions serving the hemp industry. All of us at Harris Sliwoski were excited to see the Guidance released: NCUA retained us last fall to advise the government on this project, and we have always represented credit union clients as to
The Basics of a Cannabis Insurance Policy Insurance in the cannabis industry is big business, and business owners need to know what policies are available and what those policies cover. Why? Because in insurance policies, like all other business contracts (e.g. leases), the risk of a business venture is divided between the contracting parties. Your
Succeeding in the cannabis industry is not easy, especially in California. Complex regulation, high taxes, expensive real estate, and competition with the black market are just a handful of factors that challenge cannabis businesses. The majority of players lack sufficient reserves and agility to stay in the game. Due to the substantial upfront costs required
