Regulatory Alerts2007-01-01
South Dakota Division of Banking Guidance on Medical Cannabis Banking
The South Dakota Division of Banking issued this memorandum to guide state-chartered banks on providing financial services to Marijuana-Related Businesses following the legalization of medical cannabis. The directive mandates that institutions implement robust risk management practices, including comprehensive BSA/AML programs, staff training, and strict verification of customer licensure. It further warns that while state law permits these activities, cannabis remains illegal under federal law, requiring banks to monitor indirect exposures and report suspicious activities accordingly.
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