
Robert A. Marsico
Partner
201-896-7165 rmarsico@sh-law.comFirm Insights
Author: Robert A. Marsico
Date: March 13, 2014

Partner
201-896-7165 rmarsico@sh-law.comDespite changing public sentiment and state-level marijuana legalization proposals, cannabis is still illegal under federal law. In fact, the drug is classified as a Schedule 1 Drug, the strictest classification.

Understandably, many businesses are wary of entering the industry. Even common business services, such as banking, credit card processing, leasing, and insurance, can be difficult to obtain when marijuana is involved.
To help alleviate some of the legal uncertainty, the Obama Administration has provided some guidance. Last summer, the Department of Justice (DOJ) released a memo stating that prosecutors would not pursue marijuana growers and sellers who comply with local laws, provided that state laws address federal “enforcement priorities” such as preventing interstate smuggling operations, distribution to minors, and “adverse public health consequences.”
Most recently, the Department of the Treasury issued guidance to banks that conduct business with state-licensed marijuana businesses. It clarifies when the Bank Secrecy Act (BSA) requires financial institutions to file “suspicious activity reports” (SARs). In order to align “the information provided by financial institutions in BSA reports with federal and state law enforcement priorities,” the memo distinguishes between the SARS reporting required for businesses that operate legally under state law and those that do not.
The Treasury memo also offers guidance for assessing the risk of providing services to a marijuana-related business, noting that banks should conduct customer due diligence that includes:
Because the guidance leaves a lot of grey areas and offers no guarantees, many banks in states like Colorado are calling for more definitive regulations. They point to the Marijuana Businesses Access to Banking Act, which was introduced last summer by Reps. Ed Perlmutter (D-Colo.) and Denny Heck (D-Wash.). The federal legislation would provide safe harbor for banks that deal with state-legal marijuana businesses and protect them from both criminal prosecution and administrative penalties, including loss of federal deposit insurance.
If you have any questions about the business risks associated with the marijuana industry or would like to discuss the options for your business, please contact me, Robert Marisco, or the Scarinci Hollenbeck attorney with whom you work.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Part 2 – Tips Excluded from Income Certain employees and independent contractors may be eligible to deduct tips from their income for tax years 2025 through 2028 under provisions included in the One Big Beautiful Bill. The deduction is capped at $25,000 per year and begins to phase out at $150,000 of modified adjusted gross […]
Author: Scott H. Novak

Part 1 – Overtime Pay and Income Tax Treatment Overview This Firm Insights post summarizes one provision of the “One Big Beautiful Bill” related to the tax treatment of overtime compensation and related employer wage reporting obligations. Overtime Pay and Employee Tax Treatment The Fair Labor Standards Act (FLSA) generally requires that overtime be paid […]
Author: Scott H. Novak

In 2025, New York enacted one of the most consequential updates to its consumer protection framework in decades. The Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Act) significantly expands the scope and strength of New York’s long-standing consumer protection statute, General Business Law § 349, and alters the compliance landscape for New York […]
Author: Dan Brecher

For many New Jersey businesses, growth is a primary objective for the New Year. However, it is important to recognize that growth involves both opportunity and risk. For example, business expansion often results in complex contracts, an increased workforce, new regulatory requirements, and heightened exposure to disputes. Without proactive planning, even routine growth can lead […]
Author: Ken Hollenbeck

Crypto investor protection continues to evolve, with the SEC and CFTC investing resources and coordinating more closely to uphold regulatory standards. Whether you’re a retail investor, an institutional trader, or part of a crypto startup, understanding enforcement trends is essential for navigating this dynamic and high-stakes regulatory environment. Crypto Is No Longer the Wild West […]
Author: Dan Brecher

A Settled Regulatory Environment Enables Confident Capital Planning New Jersey’s new manufacturing incentive program, Next New Jersey Manufacturing Program, enters 2026 with something uncommon in economic development these days: policy stability. The statute is enacted, New Jersey Economic Development Authority’s (“NJEDA”) rules are adopted, and the application portal is open. With the election outcome settled, […]
Author: Michael J. Sheppeard
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!