The federal National Credit Union Administration (NCUA) Board last month issued its first-ever administrative order against a financial institution for non-compliance with Financial Crimes Enforcement Network’s (FinCEN) rules for serving the cannabis industry.
The order against Michigan’s Live Life Federal Credit Union includes a consent to a cease-and-desist in which the credit union – without admitting to any wrongdoing – must “implement an automated system to effectively monitor and identify all transaction for suspicious activity” which must “include functions to support compliance with FinCEN requirements for Marijuana-Related Businesses (“MRB”).”
The system must include “reconciliation of MRB Point of Sale, METRC, or accounting system data relative to member deposits, ongoing monitoring of adverse public information affecting MRBs, timely verification of changes in licensure status, including notification of a lapse in an MRB’s state licensure, systematic monitoring of unusual Automated Clearing House or wire activity for MRB accounts, monitoring of FinCEN ‘Red Flags.’
Read more at ganjapreneur.com