Beginning Next Week: InsideCounsel will become part of Corporate Counsel. Bringing these two industry-leading websites together will now give you comprehensive coverage of the full spectrum of issues affecting today's General Counsel at companies of all sizes. You will continue to receive expert analysis on key issues including corporate litigation, labor developments, tech initiatives and intellectual property, as well as Women, Influence & Power in Law (WIPL) professional development content. Plus we'll be serving all ALM legal publications from one interconnected platform, powered by, giving you easy access to additional relevant content from other InsideCounsel sister publications.

To prevent a disruption in service, you will be automatically redirected to the new site next week. Thank you for being a valued InsideCounsel reader!


More On

Financial institutions mixed on serving marijuana industry customers

More than 1,700 reports have been filed using the Treasury-suggested phrase ‘marijuana limited’

With the lack of regulation surrounding marijuana businesses’ connection with the banking industry, what are financial institutions to do? Should they serve these customers that have legitimate businesses in some states, or should they stay away because that business is illegal in others? According to the Financial Crimes Enforcement Network (FinCEN), the answer seems to be a combination.

FinCEN numbers reveal that more than 1,700 suspicious activity reports have been filed in 25 different states using the phrase “marijuana limited.” This comes after Department of the Treasury guidance from February that told financial institutions to use this term when reporting on services provided to the marijuana industry.

However, many financial institutions are also terminating customers when determining they have a connection to the marijuana industry. Nearly 1,300 suspicious activity reports from 42 states contain the term “marijuana termination,” which the guidance proposed using when a bank cut off a customer because of marijuana connections. Furthermore, 313 suspicious activity reports contained the phrase “marijuana priority,” meaning that the customers may be involved in illegal activity.



Law firm specializes in marijuana industry-related cases

Alaska and Oregon pass marijuana legalization measures

Medical Marijuana user appeals termination in Colorado Supreme Court


The statistics were requested by Alison Jimenez, president of Dynamic Securities Analytics, and Steven Kemmerling, chief executive and founder of Enhanced Compliance Solutions, and given to the Wall Street Journal.

The marijuana industry is a growing sector, as a study from ArcView Market Research said the sector is now valued at $2.7 billion. And as more states, such as Alaska and Oregon, move towards marijuana legalization, regulations surrounding these companies will begin to take center stage.

“The exceptions are not always very clear,” said David Welch, whose firm DR Welch specializes in marijuana law, to InsideCounsel in March. “It’s important to have a lawyer involved. The lawyer is able to guide the client through the law.” Welch adds that there is no model law for how companies should handle the burgeoning industry, and “each state is different.”

Assistant Editor

author image

Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.