15 July 2016

The American Banker reports

Marijuana Business Burns Small Illinois Bank

Millennium Bank is said to have been the target of an enforcement action related to its work with the pot industry. The episode shows why many banks remain reluctant to serve the fast-growing cannabis industry.

Full Story ( Subscribers only) http://www.americanbanker.com/news/national-regional/marijuana-business-burns-small-illinois-bank-1090169-1.html

MJ BIz has more details 

According to The American Banker, Millennium Bank, a $75 million-asset institution with a single branch in Des Plaines, Illinois, signed a consent order – a voluntary agreement but with court enforceable terms – in March with the Federal Deposit Insurance Corporation and the Illinois Division of Banking, related to alleged violations of the Bank Secrecy Act.

Filing Bank Secrecy Act forms when holding a marijuana business account is one of the compliance measures a bank must take according to the 2014 FinCEN guidelines.

The consent order never mentioned marijuana. But a source familiar with the matter told The American Banker that it stemmed from the bank serving cannabis customers.

According to the consent order, Millennium Bank must improve its compliance with the Bank Secrecy Act, conduct due diligence on customers, and monitor and report suspicious clients or banking activity. The bank, which had 27 employees through March 31, must also provide “an adequate number of qualified staff in its Bank Secrecy Act department,” The American Banker reported.

Under the agreement, Millennium neither admitted nor denied the allegations.

Illinois Bank Facing Fed, State Heat Tied to MJ Clients

 

You can also read more at Weed Meme

Illinois Bank Facing Fed, State Heat Over MJ Clients