This document provides an overview of banking challenges for cannabis businesses and recent regulatory developments. It summarizes the issues cannabis businesses face in obtaining banking services due to federal restrictions. The FinCEN issued new guidance in February clarifying how financial institutions can provide services to marijuana businesses while following due diligence practices. It outlines responsibilities for financial institutions and risks they face in serving these businesses. Recent legislation has aimed to increase acceptance and provide solutions to the ongoing public safety issues resulting from cash-only businesses.

1. Crash Course:
Banking, Payment Processing &
Cash Management
Lance Ott
Founder/CEO
Guardian Data Systems

2. Background and Challenges
 Banking Access
 Banking Law
 National Banks
 Local Banks

3. Common Questions
Why are debit/credit cards restricted at
cannabis businesses?
What do banks do when they suspect
personal or business accounts are
being used for a cannabis business?
Banking Issues

4. Recent Developments
February 14th – FinCEN issues new banking guidance
 The guidance:
 Clarifies how they can provide services to
marijuana-related businesses.
 Outlines due diligence practices financial
institutions should follow to avoid
prosecution
 Pending Legislation

5. Financial Institution Responsibilites
SAR – definition
Cannabis Limited SAR
Cannabis Priority SAR
Cannabis Termination SAR
What to do now

6. Red Flags and Disturbing Trends
 Red Flags For Financial
Institutions
 Offshore Accounts
 Miscoding of Applications
 Risks – TMF/Match

7. What Are The Risks?
 Holding or loss of funds
 Match List (TMF)
 Inability to open a future
Merchant Account/DDA

8. Financial Industry Response
 Will the guidance be enough?
 Cannabis still illegal under federal law
 Banking Organizations’ Response
 Serious Public Safety Issue
 Oversight / Costs / Fees
 FinCEN – Over 300 banks supporting
industry.

9. Current Options
 CASH is still king – MASSIVE public safety issue
continues.
 Credit & Debit Cards - NO
 ATMs - NO
 Cashless ATMs – NO
 Coupons, Vouchers, Checking account schemes - NO
 Kiosks
 Closed Loop

10. Continue To Build Acceptance
 Increased Political Pressure
 Oregon Banking Bill – HB 4094
 Marijuana Business Banking Act of 2015
 The Compassionate Access, Research
Expansion & Respect States’ Act of 2015
(CARERS ACT)

11. Work With A Qualified Professional
 Work with a trusted advisor
 Perform your own due diligence
 Experience in the cannabis industry?
 Internal compliance program/policies
procedures. Comply with laws/rules/regs.

12. Thank You
Lance Ott, ETA CPP
Principal
Guardian Data Systems
Lance@GuardianDataSystems.com
888-900-0420
www.GuardianDataSystems.com
Twitter - @GuardianDataSys

13. Lance Ott
Guardian Data Systems
Founder/CEO
Crash Course: Banking,
Payment Processing &
Cash Management