Banking Issues in the Cannabis Industry: Managing Risk Under State and Federal Law
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will examine banking issues presented by the conflict between various states' legalization/decriminalization of cannabis and federal law treatment of it as a controlled substance. The panel will discuss regulatory and enforcement risks associated with financing and taking deposits from cannabis-related businesses (CRBs), and best practices for mitigating those risks. The panel will also discuss proposed legislation that could legalize certain banking activities with cannabis businesses.
- Legalization of cannabis at the state level: current status
- Federal regulation
- Controlled Substances Act
- FIN-2014-G001 and the Cole Memo
- DOJ vs. Treasury pronouncements
- Doing business with CRBs
- Reporting requirements under FIN-2014-G001: SARs
- Compliance with AML and KYC requirements and the Bank Secrecy Act
- Enforcement issues
- State level remedies
- Issues in bankruptcy: federal jurisdiction
The panel will review these and other high priority issues:
- How have banks reacted to the legalization of cannabis in various states given its treatment as a controlled substance at the federal level?
- What were the safe harbors provided under FIN-2014-G001 and the Cole Memo and how have policy pronouncements by the new administration affected them?
- What concerns should CRB lenders have in regard to remedies given the illegal nature of the underlying collateral under federal law?
- Why is compliance with AML and KYC requirements especially important before taking deposits from CRBs?
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Mr. Elster represents developers, lenders, investors, landlords, and tenants on a variety of real estate transactions, including purchase & sale, mortgage financing, construction lending, leasing, and construction agreements. He also provides counsel on tax planning and controversy. Mr. Elster's clients range from high net worth individuals to Fortune 500 companies.Close
John L. Hosack
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Enrique (Rick) Rodriguez, Jr.
Founder and Principal
Rodriguez & Associates
Mr. Rodriguez is a qualified expert in banking and real estate matters and for the past 17 years has provided a wide... | Read More
Mr. Rodriguez is a qualified expert in banking and real estate matters and for the past 17 years has provided a wide variety of real estate brokerage, financial advisory, consulting, litigation support and expert witness services to his clients. He advises law firms, development companies, financial institutions and investors on standard lending practices, market rates of interest, and other business transactions which often involve tens of millions of dollars. He is knowledgeable of capital markets and financing transactions and, as a licensed real estate broker, procures debt and equity capital for his clients from financing sources which include banks, life insurance companies, pension funds, REIT’s and conduit lenders.Close