The ACAMS Central Ohio Chapter hosted an event in June 2024 titled “Cannabis and Marijuana-Related Businesses” at BMI Federal Credit Union in Columbus, Ohio. Over 70 participants attended the event for a deeper understanding of the marijuana industry, the current state of the law and legalization efforts, as well as the challenges in providing banking and insurance services to marijuana-related businesses (MRBs).
The event involved a moderated panel discussion with experts in the legal, banking, insurance and marijuana industries. The presentation began with an overview of cannabis and MRBs provided by Megan Bennett, the assistant manager for MRB Compliance at Wright-Patt Credit Union, and Bill Williams, president and CEO of BeneLeaves, a cannabis processing business located in Columbus, Ohio. Bennett and Williams discussed the differences between cannabis products like marijuana and hemp and provided an overview of the different types of MRBs, including cultivators, processors, dispensaries and testing facilities.
The presentation then turned to marijuana legalization and the current status of state and federal law. Brian Halaiko, senior consultant for P&C Public Policy and Corporate Sustainability at Nationwide Insurance, discussed the history of marijuana legalization efforts at the state level and current federal legislative efforts. In particular, Halaiko gave the audience a brief overview of the Secure and Fair Enforcement Regulation Banking Act (SAFER Banking Act) and discussed how that bill, if enacted, might change the landscape regarding the provision of banking and insurance services to MRBs. The bill aims to ensure that state-sanctioned MRBs have access to banking, insurance and other financial services, among other things. In addition to providing a safe harbor to protect banks, credit unions and other financial institutions (FIs) from federal liability where those institutions solely provide such services to state-sanctioned MRBs or further invest income derived from those services.
David Stein, partner at the law firm Taft Stettinius & Hollister LLP, then provided a comprehensive overview of the law regarding the medical and recreational use of marijuana in Ohio, followed by a discussion of the legal status of marijuana at the federal level. This included a discussion of the recent federal proposal to reschedule marijuana to a Schedule III controlled substance under the Controlled Substances Act. During the discussion of these topics, panel members engaged in a lively debate regarding whether federal rescheduling alone ultimately would make FIs and insurance companies more willing to provide services to MRBs in the absence of legislation like the SAFER Banking Act.
The final topic of the evening―the risks and challenges of providing banking services to MRBs―spurred the most audience participation. Panelist Casey Reese, implementation manager for Green Check―a company that provides advisory and software services to FIs that provide banking services to the legal cannabis industry―discussed the three-tier MRB classification system used to follow a risk-based approach for providing financial services to MRBs. Reese drew on her experience advising FIs across the U.S. to explain how differences in state law can impact risk-based analysis.
As an operator of an MRB, Williams added to the discussion by providing important insight into the challenges that MRBs face in obtaining banking and other services, given the legal uncertainty at the federal level. Williams discussed his experiences obtaining banking services from Wright-Patt Credit Union and the importance of maintaining a close relationship and open communication with his bankers.
Audience members―many of whom represent FIs that have yet to dip a toe into MRB waters―had the most questions for Bennett of Wright-Patt Credit Union. She discussed her experiences at Wright-Patt with respect to banking MRBs, including the history of the MRB program that she manages, as well as lessons learned and processes implemented to achieve and maintain compliance. Audience members were eager to hear from both Bennett and Casey regarding risk management practices and considerations associated with providing services to MRBs.
The interactive nature of the presentation kept the audience engaged and the conversation flowing. After two hours of discussion, the attendees left the event with a better understanding of MRBs and much information to consider as this nascent industry continues to grow and gain access to financial and other services.
ACAMS Central Ohio Chapter Board, centralohioacamschapter@gmail.com
