NorthIowaToday.com

Founded in 2010

News & Entertainment for Mason City, Clear Lake & the Entire North Iowa Region

Senators press fed’s for answers on guidance provided to banks on illegal marijuana money

WASHINGTON – Senators Chuck Grassley and Dianne Feinstein are pressing the Financial Crimes Enforcement Network (FinCEN) to answer questions about the guidance it offered financial institutions on providing services to illegal drug traffickers.

In a letter to FinCEN Director Jennifer Shasky Calvery, the senators wrote that the guidance that FinCEN recently issued regarding the proceeds of illegal marijuana trafficking “severely undermines the mission of the agency” which is to safeguard the nation’s financial system from illicit use and to combat money laundering.In August 2013, the Justice Department announced it would not challenge recently passed state laws legalizing the production, trafficking, possession and recreational use of marijuana.  Subsequently, FinCEN and the Justice Department issued guidance regarding the proceeds of illegal marijuana trafficking.

“(FinCEN’s) guidance is dangerously misleading.  Indeed, following the guidance may expose financial institutions to civil or criminal liability.  Congress and the President may reconsider marijuana’s legality, but until federal law is changed, selling marijuana, laundering marijuana proceeds, and aiding and abetting those activities all remain illegal,” Grassley and Feinstein wrote.

The senators added that FinCEN’s guidance appears focused on assisting those businesses that seek to inject the proceeds of criminal activity into the nation’s financial system, and “turns FinCEN’s mission on its head.”

The senators’ questions focused on FinCEN’s authority to offer regulatory guidance on illegal activity, the impact of the guidance on federal criminal law, and how FinCEN intends to protect financial institutions should they be subject to criminal prosecution because of the services based on FinCEN guidance provided to illegal drug traffickers.

Here is a copy of the letter to FinCEN.  A signed copy can be found here.

0 0 votes
Article Rating
Subscribe
Notify of
guest

0 Comments
Inline Feedbacks
View all comments

Even more news:

Watercooler

Need help with your website?
Call your local professional,
Breakthrough Web Design:
515-897-1144
or go to
BreakthroughWebDesign.com

Copyright 2024 – Internet Marketing Pros. of Iowa, Inc.
0
Would love your thoughts, please comment.x
()
x