By Ken Kapner

GFMI’s Newest Article

The history of marijuana is one fraught with varying degrees of acceptance, illegality, utility, and recreation. As noted in GFMI’s most recent article, Marijuana Related Businesses (MRBs): High Hopes for a Fast-Growing Industry:

In the United States, ten states have legalized pot for recreational use, 33 allow it for medicinal applications, and other states may be moving in that direction. Today, more than half of the citizens of our country are living under state law that directly conflicts with federal law. The current clash between states’ legislative rights and federal regulation is resulting in “laboratories of democracy”.

This has created an interesting challenge for investors, advisors, fiduciaries, and bankers. The financial markets, as well as many investors, see the industry as a new opportunity and perhaps the fastest growth opportunity since the dot.com era.

The article goes on to describe the legalization process in states like Colorado and Washington and the resulting regulatory and legal challenges. It also summarizes the implications (and conflicts) of the Cole Memo, the Rohrabacher-Blumenthal Amendment, the Sessions Memo, and the current (uncertain) standing with the future Attorney General.

But perhaps most intriguing to our financial markets’ audience, the article highlights the challenges, opportunities, and risks that investors, advisors, fiduciaries, and bankers face in their decisions to service (or not) marijuana related businesses (MRBs).

Lastly, the article reviews the guidance that the federal regulators, such as the SEC, the Treasury and the Fed, and FinCEN, have provided to banks and other institutions within their purview.

Regulation and Compliance

Naturally, banks, credit unions, and other financial institutions must work within the guidelines of their regulatory authorities. Fortunately, GFMI offers a full suite of regulation and compliance courses to help organizations educate their employees. In light of the unique challenges and opportunities with respect to MRBs, GFMI is developing a new course – Conflict Between State and Federal Law: Marijuana Related Business. If you’d like to learn more about this course, or if you’d like to discuss how GFMI can help your regulatory and compliance functions, contact us or give us a call at +1 516.935.0923.