I. Marijuana Dispensaries Not Feeling So High: Financial Institutions Close Their Doors to State-Legalized Marijuana Businesses
A. Introduction
The Controlled Substances Act (“CSA”) prohibits “manufactur[ing], distribut[ing], or dispens[ing] marijuana.” CSA classifies marijuana as a Schedule I drug, which indicates marijuana “has no currently accepted medical use in treatment . . . .” However, marijuana use for both medical and recreational purposes is legal in four states and the District of Columbia, and marijuana use solely for medical purposes is legal in twenty-four states.
Federal marijuana criminalization laws are “the supreme law of the land” despite state decriminalization laws. The CSA and federal anti-money laundering statutes declare that financial institutions that either “conduct” or “knowing[ly]” facilitate transactions with marijuana businesses violates federal law, regardless of state law. Financial institutions that are …show more content…
. . and no additional suspicious activity has been identified.” These reports are filed because, according to the CSA, the financial institution is “fund[ing] illegal activity.” Marijuana Priority reports are filed when a financial institution “reasonably believes, based on its customer due diligence, that its customers conduct implicates [the DOJ’s enforcement priorities] or violates state law.” Marijuana Termination reports are filed when financial institutions must terminate their relationships with marijuana-related businesses “in order to maintain an effective anti-money laundering
A. Introduction
The Controlled Substances Act (“CSA”) prohibits “manufactur[ing], distribut[ing], or dispens[ing] marijuana.” CSA classifies marijuana as a Schedule I drug, which indicates marijuana “has no currently accepted medical use in treatment . . . .” However, marijuana use for both medical and recreational purposes is legal in four states and the District of Columbia, and marijuana use solely for medical purposes is legal in twenty-four states.
Federal marijuana criminalization laws are “the supreme law of the land” despite state decriminalization laws. The CSA and federal anti-money laundering statutes declare that financial institutions that either “conduct” or “knowing[ly]” facilitate transactions with marijuana businesses violates federal law, regardless of state law. Financial institutions that are …show more content…
. . and no additional suspicious activity has been identified.” These reports are filed because, according to the CSA, the financial institution is “fund[ing] illegal activity.” Marijuana Priority reports are filed when a financial institution “reasonably believes, based on its customer due diligence, that its customers conduct implicates [the DOJ’s enforcement priorities] or violates state law.” Marijuana Termination reports are filed when financial institutions must terminate their relationships with marijuana-related businesses “in order to maintain an effective anti-money laundering