7 Class Hours
Instructor: Don Childears
This class is a rare comprehensive review of the pervasive problems for banks that stem from the conflict of cannabis permissive state laws and the federal prohibition of it. The course is relevant for banks that want to serve the cannabis industry and those that want to avoid inadvertently banking cannabis. It also covers hemp in addition to medical and recreational marijuana. The course will explain the issue’s status, cause of turmoil, restrictions (legal and regulatory), challenges, consequences, bank operations and compliance, associated issues, and outlook. It will also emphasize bank risk management.
- Traces the development of the marijuana industry as well as the evolving legal and regulatory environment surrounding it
- Provides definitions of terms
- Outlines relevant federal and state laws and attempts to change the law
- Reviews banks now serving the industry, how they minimize their risk and how they avoid regulatory criticism
- Assesses impacts from bank regulatory agencies as well as U.S. Department of Justice (and its 8 priorities), U.S. Department of Agriculture, FinCEN, DEA
- Examines possible resolutions to the conflict of laws
- Identifies bank reputation risk
- Explains work-arounds attempted by creative cannabis entrepreneurs and the banking services they desire
Bank risk management focuses on desirable bank policies, procedures and personnel. The hemp review covers relevant laws and industry developments as well as risks for the bank that arise from things like uncontrollable factors in raising the crop.
Annual School Session
Second/Third Year, Second Week Elective Course
General Management & Technology Track