Pub. 10 2019 Issue 1

www.wvbankers.org 28 West Virginia Banker and these developments reflect ongoing political move- ment. For instance, a bipartisan bill was introduced in the Senate that would have purported to authorize the states to enact their own marijuana laws without federal interfer- ence. Reportedly, federal prosecutors have yet to bring federal CSA charges against an MRB that is in apparent conformity with a state legalization regime, according to the Wall Street Journal. (S. Gurman & N. Andrews, “Jeff Sessions Struggles to Get Planned Marijuana Crackdown Going,” June 10, 2018, Wall Street Journal.) Instead, anec- dotal reporting on DOJ activity suggests that, whatever former AG Sessions intended by his rescinding of the Cole Memoranda, the DOJ has used its limited resources to target marijuana operations that flaunt federal law, such as “businesses” that are surreptitiously growing marijuana on federal lands, or criminal gangs that sell marijuana along with other drugs. What should banks consider and understand before establishing business-relationships with MRBs? Banks looking to develop a marijuana-related business segment have some work to do before diving in. This will involve: • getting legal advice, • having an open discussion with regulators, and • looking closely at the bank’s compliance and risk man- agement functions. In addition, banks should examine their insurance programs with this business segment in mind. Coverage should be dis- cussed with the bank’s agent or broker, the bank’s attorney, and not least, with the bank’s insurers.  Decriminalization Continued from Page 27