DBO Issues Cannabis Banking Guidance

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The California Department of Business Oversight (DBO) issued guidance to state-chartered financial institutions – banks and credit unions -  regarding banking relationships with cannabis-related businesses as more banks and credit unions choose to bank the industry.

The guidance, is part of the DBO’s continued effort to assist banks and credit unions that serve the cannabis-related businesses in California and will help financial institutions make appropriate risk assessments and comply with federal guidelines. The DBO developed the questionnaire for the growing number of state banks and credit unions establishing banking relationships with cannabis-related businesses.

The DBO also reaffirmed that it will not bring regulatory actions against state-chartered banks or credit unions solely for establishing a banking relationship with licensed cannabis businesses. These financial institutions will still be required to comply with FinCEN’s BSA expectations, including the FinCEN guidance and priorities set forth in the Cole Memo, and identify, evaluate, and manage risks appropriately.

Click here for the DBO Guidance. 

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