The Herald Bulletin

Morning Update

Nation & World

February 14, 2014

Government lets banks, marijuana sellers do business

WASHINGTON — The Obama administration on Friday gave banks a roadmap 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 and file reports that will be valuable to law enforcement.

1
Text Only
Nation & World
  • FEA - HB0121 - flu - 05 Second wave of milder flu hitting Northeast

    Months ago, the flu season seemed to be winding down. But health officials on Friday reported widespread flu-like illnesses in six states.

    April 18, 2014 1 Photo

  • NWS - HB0525 - marijuana - JM -pic (4).jpg Colorado deaths stoke worries about pot edibles

    A college student eats more than the recommended dose of a marijuana-laced cookie and jumps to his death from a hotel balcony. A husband with no history of violence is accused of shooting his wife in the head, possibly after eating pot-infused candy.

    April 18, 2014 1 Photo

  • news_skoreaferry.jpg Ferry captain arrested in South Korea disaster

    A prosecutor says the captain of the South Korean ferry that sank two days ago has been arrested.

    April 18, 2014 1 Photo

  • Clinton visit.jpg Documents: Clinton sought GOP support for health care

    Thousands of pages of documents from President Bill Clinton's White House affirm a longtime adage: The more things change, the more they stay the same.

    April 18, 2014 1 Photo

  • Student struggles to recount fatal truck-bus crash

    Most of the 911 calls from witnesses to last week's fiery truck-bus collision that killed 10 were matter of fact. Then there was the one from a passenger: With shrieks in the background, the student struggled to recount how a truck came roaring toward them.

    April 18, 2014

  • Magnitude-7.5 earthquake shakes Mexican capital

     A powerful, magnitude-7.5 earthquake shook central and southern Mexico on Friday. The U.S. Geological Survey said it was centered northwest of the Pacific resort of Acapulco, where many Mexicans are vacationing for the Easter holiday.

    April 18, 2014

  • Avalanche sweeps down Everest, killing at least 12

    An avalanche swept down a climbing route on Mount Everest early Friday, killing at least 12 Nepalese guides and leaving three missing in the deadliest disaster on the world's highest peak.

    April 18, 2014

  • news_horselesscarriage.jpg Proposed car to replace NYC horse carriages shown

    An electric car that proponents hope will replace horse-drawn carriages in New York City was presented Thursday at the New York International Auto Show, as critics expressed their distaste for the idea.

    April 18, 2014 1 Photo

  • news_homesickforprison.jpg Man said to be homesick for prison gets 3½ years

    An ex-con who spent most of his adult life behind bars on Thursday got what he said he wanted for robbing a suburban Chicago bank. The 74-year-old gets to go back to the place he called home — prison.

    April 17, 2014 1 Photo

  • Gay Marriage Utah [Duplicate] Judge asks pointed questions in gay marriage case

    A judge in Colorado who will play a pivotal role deciding whether gays should be allowed to wed in the United States asked pointed questions Thursday about whether Oklahoma can legally ban the unions.

    April 17, 2014 1 Photo

More Resources from The Herald Bulletin
AP Video
Captain of Sunken SKorean Ferry Arrested Raw: Fire Destroys 3 N.J. Beachfront Homes Raw: Pope Presides Over Good Friday Mass Raw: Space X Launches to Space Station Superheroes Descend on Capitol Mall Man Charged in Kansas City Highway Shootings Obama Awards Navy Football Trophy Anti-semitic Leaflets Posted in Eastern Ukraine Raw: Magnitude-7.2 Earthquake Shakes Mexico City Ceremony at MIT Remembers One of Boston's Finest Raw: Students Hurt in Colo. School Bus Crash Raw: Church Tries for Record With Chalk Jesus Raw: Faithful Celebrate Good Friday Worldwide Deadly Avalanche Sweeps Slopes of Mount Everest Police Arrest Suspect in Highway Shootings Drought Concerns May Hurt Lake Tourism Vermont Goat Meat Gives Refugees Taste of Home Calif. Investigators Re-construct Fatal Bus Cras Mayor Rob Ford Launches Re-election Campaign Appellate Court Hears Okla. Gay Marriage Case
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Helium debate
Helium