Insights
White Collar Principal Barbara Rowland Analyzes Marijuana Decriminalization and Legal Concerns for Enterprises for Business Crimes Bulletin
In an April 2014 article for American Lawyer Media's Business Crimes Bulletin, Internal Investigations & White Collar Defense Principal Barbara Rowland explores recent changes in the law surrounding use and distribution of marijuana. In particular, Ms. Rowland analyzes how models and standards from other highly regulated industries may help enterprises considering entry into the legal marijuana industry, including entrepreneurs and financial institutions.
Ms. Rowland notes:
"As marijuana sales in Colorado take off, the issue of cash transactions has become a law enforcement concern. Mainstream banks and other financial institutions fear violating the Bank Secrecy Act and by serving local marijuana businesses, driving sellers to deal in cash only.
For marijuana businesses, financial institutions must undertake regular due diligence to "know their customers." Banks must, for example, regularly verify and review customers' state licenses and related documentation; develop an understanding of each businesses "normal and expected activity; and monitor publicly available sources for adverse information about businesses for "red flags" of suspicious activity."
