FIBA Gets Clarification from FinCEN on MRB Reporting
On June 22nd, FIBA received FinCEN’s response to its September 2020 request for guidance on the applicability of FinCEN’s 2014 guidance on BSA expectations surrounding Marijuana-related businesses (“MRB’s”). FIBA’s request centered on a financial institution’s obligation to file a ”Marijuana Limited” SAR, including the reportability of aggregated instances where any particular instance did not meet the regulatory reporting threshold.
Under the newly-issued guidance:
Only those transactions that “involve or aggregate to “ at least $5000 in funds or assets are reportable.
No specific obligation to report is required when transactions occur during a 90- day period when the transactions do not aggregate to the reporting threshold.
Institutions are nonetheless urged to follow the existing 2014 guidance on continuing activity.
Indirect transactions, as defined in the earlier guidance, need not distinguish between Marijuana Limited and Marijuana Priority.
FinCEN’s response not only provides essential information and guidance to our members in enabling them to meet their compliance obligations but also evidences the regulatory partnership between FIBA and our regulators and the regulatory cooperation and candor it provides.
Our members are urged to read the response [here] and assess how it may affect their individual reporting practices.
Regards,
FIBA Legal & Regulatory Affairs Committee
DAVID SCHWARTZ
President and CEO of FIBA
SERGIO ALVAREZ-MENA
Chair, Legal & Regulatory Affairs Committee
Jones Day
DANIEL GUTIERREZ
Co-Chair Legal & Regulatory Affairs Committee Ocean Bank