When should a credit union file a Marijuana Limited SAR?

A credit union should file a Marijuana Limited SAR (Suspicious Activity Report) when the business does not implicate the Department of Justice's (DOJ) enforcement priorities. This option highlights the requirements set forth by the Financial Crimes Enforcement Network (FinCEN) in its guidance regarding marijuana-related businesses.

Under this guidance, credit unions and financial institutions can provide services to state-legal marijuana-related businesses, provided they adhere to certain conditions. One of these conditions is ensuring that the activities of the business do not conflict with the DOJ’s enforcement priorities. This includes the prohibition of selling marijuana to minors, the prevention of revenue from marijuana sales being diverted to illegal activities, and ensuring that the activities don’t involve federal violations. If the business is compliant with state law and does not raise concerns related to these enforcement priorities, a Marijuana Limited SAR is appropriate to indicate that the credit union has assessed the situation in line with federal guidelines.

In contrast, while the other choices might involve situations that raise suspicions or require a response, they do not specifically address the criteria for filing a Marijuana Limited SAR as it relates to the DOJ’s enforcement priorities. For instance, a violation of state law or situations of suspected money laundering would prompt different regulatory obligations, while the lack