According to the Financial Crimes Enforcement Network, “because federal law prohibits the distribution and sale of marijuana, financial transactions involving a marijuana related business would generally involve funds derived from illegal activity. Therefore, a financial institution is required to file a SAR on activity involving a marijuana-related business (including those duly licensed under state law), [and] thorough customer due diligence is a critical aspect of making this assessment.”
In order to effectively meet these guidelines, all financial institutions need to first determine how they define “marijuana related business” and then develop risk-based policies and procedures specific to MRBs, including effective methods for consistently identifying and treating them. To address this need, CRB Monitor’s founder Steve Kemmerling created a risk-tiering system for Cannabis-Related Businesses (CRBs) that has become the standard for financial compliance policymakers throughout the U.S. seeking to manage their institutions cannabis-related risks, whether they choose to engage with these companies or avoid them.
Published by the Association of Certified Anti-Money Laundering Specialists, “Defining Marijuana-related Businesses” has quickly become the standard policy framework for determining cannabis-related business risk for credit providers, depository institutions, and investors in these businesses. Download your copy now to see how it can help your organization manage risk and stay complaint in this fast-changing industry.
