Jump to content

Regulators crack down on Michigan credit union’s marijuana banking


Recommended Posts

An independent federal agency cited a Michigan credit union for failing to comply with marijuana banking regulations and ordered the financial institution to stop opening new cannabis accounts.

American Banker reported that the case involving Live Life Federal Credit Union is believed to be the first time U.S. regulators have publicly penalized a financial institution that handles cannabis accounts. But that couldn’t be immediately verified.

The National Credit Union Administration’s cease-and-desist order, though, does underscore that financial institutions must remain vigilant about compliance when serving marijuana businesses.

The Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Treasury, issued requirements to financial institutions about monitoring and reporting suspicious activity such as possible money laundering.

Live Life is based in Fraser, roughly 20 miles north of Detroit,

and has about 150 cannabis customers.

According to the order, Live Life waived its right to appeal and agreed to take the following actions:

  • Immediately cease opening new marijuana accounts and suspend transactional activity on certain existing accounts.
  • Implement an automated system to effectively monitor, identify and file suspicious activity reports in accordance with FinCEN regulations.
  • Engage a third party to validate compliance.

Live Life CEO Karla Haglund acknowledged to American Banker that the credit union had a manual system and missed or filed some suspicious activity reports late.

“The cannabis atmosphere is very fast-paced,” Haglund said. “It can be very draining for staff.

“You have to work a lot of hours, so we had slowed the program down anyway.”

Read More Stories Here

LEGAL ADVISORY – Rules, Regulations and laws may have changed after this information was posted. It is up to the reader to research and determine the current status of those items. It is always best to consult an attorney that has experience and is focused on the cannabis industry. One of the most well known law firms in the industry for over 25 years is Komorn Law

Other Posts


2019 2020 Adult Recreational Use Adult Use breathalyzer California cannabis Caregivers coronavirus Corona Virus Covid 19 datamaster drugged driving DUI Education Event FDA Hemp israel LARA LARA-BMR Laws legalization Marijuana medical marijuana michigan Michigan Legislature Michigan News MMFLA MMMA MRA MSP News opt out pandemic 2020 patient-caregiver Patients Recreational regulations Release smell taxes USA USA News world news

The post Regulators crack down on Michigan credit union’s marijuana banking appeared first on Michigan Medical Marijuana.

View the full article

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Create New...