CANNAINVESTOR Magazine U.S. Privately Held August 2018 | Page 30

On February 14, 2014 the Department of the Treasury Financial Crimes Enforcement Network set out a guidance that financial institutions are to follow in order to “bank” marijuana businesses.

From time to time up to 400 of 12,000 financial banks and credit unions have filed to provide a SAR for activities in this industry.

Some businesses don’t reveal who they are which puts the bank/credit union in harms way. These businesses are eventually found out and their account is closed because the bank/credit union does not have the proper AML processes to handle the business.

getexponow.com

Why Don’t Banks Participate In High Risk Industries?

30