Federal Agency Smack Down on a Michigan Credit Union’s Cannabis Banking

Federal Agency Smack Down on a Michigan Credit Union’s Cannabis Banking

Apple to Apples

An independent federal agency has recently cited a Michigan credit union for non-compliance with regulations regarding banking services for the marijuana industry. Consequently, the financial institution has been directed to halt the opening of new cannabis accounts.

The National Credit Union Administration’s cease-and-desist order emphasizes the need for financial institutions to maintain compliance when providing services to marijuana businesses.

Attorney Michael Komorn

Attorney Michael Komorn

State / Federal Legal Defense

With extensive experience in criminal legal defense since 1993 from pre-arrest, District, Circuit, Appeals, Supreme and the Federal court systems.

KOMORN LAW (248) 357-2550

The Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Treasury, has issued regulations to financial institutions regarding the surveillance and reporting of suspicious activities, including potential money laundering.

The credit union had a manual system, which resulted in the late filing or missed suspicious activity reports.

According to the order the credit union waived its right to appeal and agreed to take the following steps:

Immediately cease opening new marijuana accounts and suspend transactional activity on certain existing accounts. Implement an automated system to effectively monitor, identify and file suspicious activity reports in accordance with FinCEN regulations. Engage a third party to validate compliance.

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Cannabis cash transactions aren’t suspicious says IRS

Cannabis cash transactions aren’t suspicious says IRS

Following The Money

Large cash transactions by marijuana businesses should not be automatically flagged as suspicious, as per the latest IRS guidance.

The tax agency’s guidance aims to provide clarity on the federal Bank Secrecy Act, which mandates businesses, including banks, to submit Form 8300 within 15 days if they receive $10,000 or more in cash.

Attorney Michael Komorn

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State / Federal Legal Defense

With extensive experience in criminal legal defense since 1993 from pre-arrest, District, Circuit, Appeals, Supreme and the Federal court systems.

KOMORN LAW (248) 357-2550

Those forms enable the filer to categorize a transaction as “suspicious,” providing vital information for investigation by the IRS and the Financial Crimes Enforcement Network (FinCEN) into potential criminal activity.

But classifying a cash transaction from a legitimate cannabis enterprise as suspicious in a defensive manner is a misuse of that designation,” cautioned IRS Special Counsel Charles Hall in a memorandum dated January 22nd.

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Our Kids are Dying of Drug Overdoses

Our Kids are Dying of Drug Overdoses

THE KIDS AREN’T ALRIGHT, THEY’RE DYING OF DRUG OVERDOSES

From May 2022 to May 2023, the Centers for Disease Control and Prevention reported an alarming 37 percent increase in American lives lost due to overdoses, totaling over 112,000 fatalities.

This staggering surge highlights the urgent need for effective measures to address this crisis, emphasizing the crucial role of prevention and intervention in combating this devastating trend.

The vast majority of those who perished were adults, but drug overdoses are claiming the lives of young Americans at an alarming rate. The number of fatalities skyrocketed from 31 in July 2019 to 87 in May 2021, marking a period of unprecedented statistics.

When analyzing data for Americans aged 10 to 19 years old, the CDC discovered a similar trend to that seen in adults: a majority of adolescent deaths caused by drug overdoses are males.

However, among these fatalities, there is a larger proportion of girls compared to women.

More boys in the tween and teenage age group are dying from drug overdoses compared to girls, with the number being more than double.

Attorney Michael Komorn

Attorney Michael Komorn

State / Federal Legal Defense

With extensive experience in criminal legal defense since 1993 from pre-arrest, District, Circuit, Appeals, Supreme and the Federal court systems.

KOMORN LAW (248) 357-2550

Another significant distinction is the underlying cause behind these tragic overdose cases.

Among adults, individuals who engage in polydrug use face a higher risk of fatal overdose compared to those consuming a single substance.

The most prevalent combinations involve the concurrent use of fentanyl with another opioid, such as a prescription medication, or fentanyl combined with a stimulant like cocaine or methamphetamine.

Fentanyl is frequently attributed as the root cause.

Fentanyl is the primary cause of fatal overdoses among adolescents. Fentanyl is involved in 84 percent of fatal overdoses among teens, and it constitutes 56 percent of all overdoses.

Fentanyl is an incredibly potent opioid, surpassing the strength of morphine by an estimated 100 times. This makes it a powerful drug often used in hospital settings. However, it is crucial to note that teens and tweens generally possess a limited tolerance to opioids due to their lack of exposure, and fentanyl’s heightened potency greatly increases the risk of overdose for this demographic.

Many young people unknowingly consume fentanyl when they mistakenly consume counterfeit pills that they think are prescription opioids, stimulants, or other illicit drugs that have been adulterated with this substance.

This inadvertent use can increase the risk of overdose, as individuals who are unaware they are consuming fentanyl are less likely to have naloxone or fentanyl test strips readily available for reversing an overdose.

In 67% of adolescent overdose deaths, there was an opportunity for bystanders to intervene, yet it was only in less than half of those cases that Naloxone was administered.

Only 10% of teenagers and pre-teens who succumbed to a drug overdose had sought treatment for substance abuse, while just 14% had previously encountered a nonfatal overdose.

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Rescheduling Marijuana Would Be a Threat to Public Health

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Kevin Sabet of Smart Approaches to Marijuana says policy makers need to learn from their mistakes with hemp when considering marijuana rescheduling.

It’s rare for policymakers to get a preview of the consequences of pending policies, but the descheduling of hemp-derived THC products has provided a preview of what is to come if marijuana is rescheduled and commercialized.

As the federal government considers rescheduling marijuana, policymakers should learn from the mistakes that were made in the 2018 Farm Bill. If marijuana is rescheduled—or descheduled—these same harms will be scaled up nationwide and further accelerated by a predatory, profit-driven industry fueled by Wall Street investors.

Just like the legalization of hemp has led to the creation of new psychoactive compounds, the rescheduling of marijuana will grossly threaten public health and safety.

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Attorney Michael Komorn

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State / Federal Legal Defense

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KOMORN LAW (248) 357-2550

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Climate and Health Adaptation Program

You must save yourself from yourself.

Meet MICHAP

Our Vision: Michigan’s public health system fosters equitable health and wellbeing as it adapts to the current and future impacts of climate change.

Our Mission: The Michigan Climate and Health Adaptation Program (MICHAP) supports a climate resilient public health system by investigating climate-driven health risks, identifying information for decision-making across sectors, and collaboratively implementing climate adaptation strategies.

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Michigan’s new growth plan: Sacrifices must be made for the environment and team.

Last week Michigan Chief Growth Officer Hilary Doe described immigration as the green line in Michigan’s population story, the one number going up, besides prices, inflation, real estate, groceries, taxes, fees, fees for fees, convience fees, registrations, regulatory fees, utilities, interest rates, school loans, etc, etc, etc.

But A SEMCOG report last year found that 14,012 people aged 64 or younger left Southeast Michigan each year between 2010 and 2019, while 14,737 foreigners arrived annually. It’s 2024. It’s a stunning and brave new world – who cares about 2010-2019.

Statewide, immigration “helps offset our out-migration a little bit,” Doe said.

Doh is right… A little bit? Why are they leaving a climate haven is the question and why all of the sudden are Michigan citizens asked to let strangers into their homes to live.

Yes “sponsor” a family. Let’s start at your house.

 

In 2020, Gov. Gretchen Whitmer created the Office of Global Michigan.

And now that office is asking Michiganders to ignore common sense and serve as sponsors to refugees. Sounds like a win win.

Read more about that here and below

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The Division of Environmental Health (DEH) uses the best available science to reduce, eliminate, or prevent public health harm from environmental, chemical, and physical hazards. Learn more about DEH

***If You believe you are in immediate danger, call 911 or Contact Poison Control at 800-222-1222.

For less urgent concerns, call the MDHHS Toxicology and Environmental Health hotline at 800-648-6942, Monday through Friday between 8 a.m. and 5 p.m.

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Feds discover new methods to distinguish hemp and marijuana to assist crime labs

Feds discover new methods to distinguish hemp and marijuana to assist crime labs

Federally funded researchers have uncovered two methods to divide and diversify the difference between hemp and cannabis to assist to crime labs. 

Because Cannabis is still a crime and Hemp is not…

The Controlled Substance Act of 1970 classified the plant cannabis, which was historically classified as either marijuana or hemp, as an illegal drug, a Schedule I controlled substance with a high potential for abuse and no FDA-approved medical use in the United States.

For more than 50 years, hundreds of thousands of people were arrested and imprisoned for possessing it.

317,793 Americans are arrested annually for possession of marijuana. Easy Target – Easy Money.

The Farm Bill of 2018 changed this straightforward classification of cannabis. The bill legalized the form of cannabis classified as hemp, while the form classified as marijuana remained illegal.

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The National Institute of Justice (NIJ), an entity within the “Justice” Department, is actively promoting the results of two research projects that it funded, both centered around cannabis lab testing. These findings are now being shared exclusively with select law enforcement agencies.

The aim of the initiatives was to streamline the testing process in order to address the increasing crime lab backlogs caused by the federal legalization of hemp with up to 0.3 percent THC under the 2018 Farm Bill.

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Current testing methods are unable to accurately determine the exact amount of THC in a sample, as stated in the recent update by NIJ. However, the researchers they have funded have achieved a significant breakthrough.

Using gas chromatography-mass spectrometry (GC-MS) and direct analysis in real time-high-resolution mass spectrometry (DART-HRMS), they are now able to isolate the THC content, along with other cannabinoids.

This discovery marks a significant advancement in our ability to analyze and understand the composition of cannabis samples.

In the government, everything is go spend more money and if that doesn’t work, it’s go spend more money and if that doesn’t work spend more money and so on and so on.

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