Pubdate: Sat, 15 Feb 2014
Source: Buffalo News (NY)
Copyright: 2014 Associated Press
Contact: http://drugsense.org/url/GXIzebQL
Website: http://www.buffalonews.com/
Details: http://www.mapinc.org/media/61
Author: Pete Yost, Associated Press

BANKS CLEARED FOR POT BUSINESS

WASHINGTON (AP) - The Obama administration on Friday gave banks a 
road map for doing business with legal marijuana sellers without 
getting into trouble, another step by the federal government toward 
enabling a legalized marijuana industry to operate in states that approve it.

The guidance issued by the Justice Department and Treasury Department 
is intended to increase the availability of financial services for 
legal marijuana businesses that are licensed and regulated, while 
preserving the government's enforcement power.

Washington and Colorado in 2012 became the first states in the nation 
to approve recreational use of marijuana. A citizens' group is hoping 
to make Alaska the third state in the nation to do so.

Currently, processing money from marijuana sales puts federally 
insured banks at risk of drug racketeering charges, and they 
therefore refuse to open accounts for marijuana related businesses.

Friday's move will allow banks and other financial institutions to 
serve marijuana related businesses while ensuring that they know 
their customers' legitimacy and remain obligated to report possible 
criminal activity, the Treasury Department said.

States' legalization of marijuana prompted the Financial Crimes 
Enforcement Network, a Treasury Department office, "to move from the 
shadows the historically covert financial operations of marijuana 
businesses," said office director Jennifer Shasky Calvery. "Our 
guidance provides financial institutions with clarity on what they 
must do if they are going to provide financial services to marijuana 
businesses and what reporting will assist law enforcement."

FinCEN writes the rules that U.S. financial institutions must follow 
to help protect the U.S. financial system from money laundering and 
the financing of terrorism. The office said it expects financial 
institutions to perform thorough customer due diligence on marijuana businesses.
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