The Medicinal Cannabis (R)evolution

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and the nature and extent of the ownership interest of each such owner; ii. to conduct enhanced scrutiny of such account to guard against money laundering and report any suspicious transactions under subsection (g); and iii. ) to ascertain whether such foreign bank provides correspondent accounts to other foreign banks and, if so, the identity of those foreign banks and related due diligence information, as appropriate under paragraph (1). Sec. 320. Proceeds of Foreign Crimes. Section 981(a)(1)(B) of title 18, United States Code, is amended to read as follows: B. Any property, real or personal, within the jurisdiction of the United States, constituting, derived from, or traceable to, any proceeds obtained directly or indirectly from an offense against a foreign nation, or any property used to facilitate such an offense, if the offense— i. involves the manufacture, importation, sale, or distribution of a controlled substance (as that term is defined for purposes of the Controlled Substances Act), or any other conduct described in section 1956(c)(7)(B); ii. would be punishable within the jurisdiction of the foreign nation by death or imprisonment for a term exceeding 1 year; and iii. would be punishable under the laws of the United States by imprisonment for a term exceeding 1 year, if the act or activity constituting the offense had occurred within the jurisdiction of the United States.'. Source: US Patriot Act Financial Crimes Enforcement Network ( FinCen) Guidance In 2014 FinCen issued guidance to financial institutions seeking to provide services marijuana related businesses. The objective of the guidance was to advise financial institutions on how financial institutions can provide services to marijuana-related businesses consistent with their BSA obligations. Though comprehensive the guidance note does not consider foreign institutions and also prohibits transfer of funds to states where cannabis has not been legalized. The following are highlights from the guidance:

Source: FinCen

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