PRESIDENT’S COLUMN Serving Our Customers, Protecting Our Banks Ingrained in every Arkansas banker is the desire to help a new business grow, prosper and enhance our communities. Not always will the answer for new funds be “yes;” sometimes it is a very correct “not yet,” and occasionally it is a sound “no.” Surely we are always ready to provide our services and funding to new business opportunities in our communities; especially when this developing business is projected to create more new jobs than the manufacturing sector of our national economy. But what if this new business is cultivating or dispensing marijuana? Most banks are sitting on the sidelines, weighing the reputational, legal, and regulatory risks before deciding on a business plan. Arkansas is one of 29 states that have made medical marijuana legal under a regulated program. Eight other states have expanded their program to include recreational use and/or edible products. Cannabis is legal in each of these states, but remains a class I drug prohibited by federal laws. And recently U.S. Attorney General Sessions has reiterated his strong feelings that it should not be a legal drug. So, what should our banks be aware of as we face new businesses that are legal under our state’s
laws, and illegal under our federal laws? What should we know about our existing customers who will provide a product or service to a marijuana business? What do we need to do when we have a longtime customer who has had a transaction with a marijuana business? What do we have to report, which SAR do we file, what do we have to investigate, where do we go for answers? These are all parts of the maze that is created by this new, but growing industry. Not banking this new industry also poses reputational risk. Under our state’s laws these are legal businesses that deserve the same banking services as other businesses. These are cash intensive businesses that must pay the vendors, landlords, suppliers and employees with cash. There will undoubtedly be people willing to risk their safety, and the safety of anyone else in the area, to attempt to attain possession of these large cash pools. Our communities look to us to provide a safe consumer cash experience, something that may now be threatened. It is not a problem we can solve. Federal legislation is urgently needed to make banking state-legal marijuana businesses less problematic and challenging.
ABA STAFF
BILL HOLMES
PRESIDENT/CEO 501.978.3602 | bill.holmes@arkbankers.org
CARLA BRINKLEY
VP/CONTROLLER 501.978.3608 | carla.brinkley@arkbankers.org
AVA F. ROBERTS
BARRY JACKSON
SVP/COO 501.978.3613 | barry.jackson@arkbankers.org
KAMI T. COLEMAN
VP/PROFESSIONAL DEVELOPMENT 501.978.3614 | kami.coleman@arkbankers.org
TRACI LOGSDON
VP/DIRECTOR OF GOVERNMENT RELATIONS 501.978.3606 | ava.roberts@arkbankers.org
DIRECTOR OF COMMUNICATIONS 501.978.3603 | traci.logsdon@arkbankers.org
JESSICA SAHENE
BRENDA SCARBROUGH
MARKETING COORDINATOR 501.978.3609 | jessica.sahene@arkbankers.org
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PRESIDENT & CEO BILL HOLMES
The TheArkansas ArkansasBanker Banker || September September2017 2017
ADMINISTRATIVE ASSISTANT 501.978.3607 | brenda.scarbrough@arkbankers.org
