For hemp-related customers, banks no longer need to file suspicious activity reports according to a guidance statement issued by the Federal Reserve, FDIC, OCC and FinCEN, in consultation with the Conference of State Bank Supervisors. The descheduling of hemp from the Controlled Substances Act eliminates the need for banks to
Continue Reading Banking Hemp: The Banking Regulators Move Forward

Congress now has three different cannabis bills and three different approaches before it. One approach, taken by the Secure and Fair Enforcement Banking Act (the SAFE Banking Act), is to focus specifically on the difficulties faced by the banking, insurance and payments sectors. Another approach, taken by the Strengthening the
Continue Reading Cannabis Legalization? — Updated Briefing on the SAFE Banking Act, the STATES Act and the MORE Act

For those following Congressional efforts to solve the challenges of banking the cannabis sector, we have updated our briefing on the two pending bills in light of the Senate Banking Committee hearing on Tuesday July 23 on “Challenges for Cannabis and Banking:  Outside Perspectives.”  We cover both of the two
Continue Reading Davis Polk Client Memorandum: Banking and Cannabis — Updated Briefing on the SAFE Banking Act and STATES Act

A bipartisan group of 38 state and territorial attorneys general has signed an open letter to Congress calling for legislative change for banking and financial institutions wishing to provide services to cannabis businesses. The letter describes the severe financial restrictions faced by cannabis businesses that operate legally under state law
Continue Reading Bipartisan Support for Cannabis Banking Safe Harbor Reaches New High with Letter from Attorneys General

In separate statements on April 17, 2019 coinciding with the anniversary of the Bay of Pigs invasion, U.S. Secretary of State Mike Pompeo and National Security Adviser John Bolton announced several measures intended to increase pressure on Cuba, Venezuela, and Nicaragua, in response to corruption, human rights abuses, and political
Continue Reading U.S. Government Targets “Three Stooges of Socialism” with New Measures Against Cuba, Venezuela, and Nicaragua

There is now a serious effort underway by the usually divided Congress to find a way for the growing cannabis sector to enter the mainstream financial sector.  Our newest visual memorandum updates our earlier briefing on the two legislative vehicles:  the Secure and Fair Enforcement Banking Act (the SAFE Banking
Continue Reading Banking and Cannabis — Updated Briefing on the SAFE Banking Act and STATES Act

We recently wrote an article for Thomson Reuters’ Practical Law outlining the state of play for the financial services sector’s relationship with the U.S. cannabis sector.  Our article summarizes the dilemma arising from the widening gulf between static federal prohibitions and changing state laws.  We consider and reject a number
Continue Reading Practical Law: Financial Services and the US Cannabis Sector

Cannabis legislation for banking is now getting more serious attention, as it should. On Wednesday, February 13, the Consumer Protection and Financial Institutions Subcommittee of the House Committee on Financial Services will convene a hearing entitled, “Challenges and Solutions:  Access to Banking Services for Cannabis-Related Businesses.” The hearing follows Chairwoman
Continue Reading Proposed U.S. Federal Cannabis Legislation: Briefing on the SAFE Act and STATES Act

The banking sector should pay close attention to the recent bipartisan bill supporting marijuana legal reform (the “Strengthening the Tenth Amendment Through Entrusting States Act” or the “STATES Act”) given the increasing difficulty current law creates even for those banks that are deliberately avoiding the cannabis sector.  Post mid-term elections,
Continue Reading Bipartisan Marijuana Bill Would Permit Banking Legal Cannabis Businesses