Here’s the introduction

Complete short article at

https://www.wilmerhale.com/en/insights/client-alerts/20190207-developments-in-the-marijuana-market-and-the-implications-for-economic-institutions

 

The myriad—and conflicting—state, federal and international laws governing the burgeoning marijuana market have designed a difficult legal landscape for economic institutions. In the United States, most states have legalized some type of marijuana use, but the manufacture, sale and distribution of marijuana nonetheless remains illegal beneath federal law. As a outcome, in giving economic merchandise and solutions to US marijuana-connected companies (MRBs), a economic institution could danger violating the Controlled Substances Act (CSA), 21 U.S.C. § 841. Furthermore, engaging in or facilitating transactions that include proceeds from US marijuana sales could produce liability beneath the revenue laundering laws. 

Additional complicating matters, Canada became the initial significant globe economy to legalize recreational marijuana in October 2018. For the reason that the US narcotics laws commonly do not apply to activity that is legal abroad, giving economic merchandise and solutions to Canadian MRBs would not violate the CSA or implicate the US revenue laundering laws. On the other hand, that is not the case in numerous European nations. The European Union not too long ago passed a law expanding the extraterritorial scope of member countries’ revenue laundering laws with respect to particular narcotics-connected offenses. These laws could now criminalize the transfer of funds from activity that is legal in the foreign nation (e.g., marijuana sales in Canada) if that activity would be illegal in the household nation. 

Under we go over the fragmented legal and regulatory landscape governing the marijuana market as nicely as notable current developments and their implications for worldwide economic institutions.

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