Compliance

Banking and FinanceCapitalOffice of Foriegn Asset Controls

Cannabis Fundraising: Understanding SEC Accredited Investor Rules

Navigating the complexities of cannabis fundraising can be daunting, especially when it comes to understanding SEC accredited investor rules. Essentially, the SEC’s rules for accredited investors in cannabis fundraising stipulate that individuals or entities must meet specific financial criteria to invest in private cannabis businesses, ensuring that they can bear the potential risks involved. In this article, we’ll break down these regulations and provide a clear roadmap for cannabis entrepreneurs and investors alike.

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Cybersecurity

Data Privacy and Cybersecurity: Key Risks in Cannabis Compliance Programs

In the rapidly evolving cannabis industry, data privacy and cybersecurity have become critical components of compliance programs. As cannabis companies handle sensitive customer information and navigate complex regulatory landscapes, addressing these key risks is essential to safeguarding their operations and maintaining consumer trust. This article explores the primary data privacy and cybersecurity challenges faced by cannabis businesses and outlines best practices for mitigating these risks.

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Accounting and TaxesCompensation and Equity

Understanding the New QPAM Exemption Rules: A Comprehensive Guide

The QPAM exemption is a pivotal regulatory measure that allows employee benefit plans to engage in transactions that would otherwise be prohibited under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code. This exemption is crucial for investment fiduciaries, including fund managers and investment managers, as it facilitates smoother and lawful operations by providing a clear framework within which these transactions can occur.
The primary purpose of the QPAM exemption is to prevent conflicts of interest and ensure that transactions are conducted in the best interests of the plan participants. By leveraging this exemption, investment managers can engage in transactions with parties that would otherwise be considered prohibited due to potential conflicts of interest, provided they meet certain stringent criteria designed to protect the interests of the plan beneficiaries.

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Section 280E

Navigating the Impact of Section 280E and the DEA’s Proposed Marijuana Rescheduling

he tax rules governing when expenses are paid or incurred and the filing of past or prospective claims can be complex. Following rescheduling, or possibly before, the IRS may issue guidance on how rescheduling impacts Section 280E and the deduction of marijuana-related expenses. Meanwhile, cannabis businesses should consult with tax professionals to strategically time expenses and submit necessary documentation to secure potential refunds for taxes paid under Section 280E.

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Banking and FinanceCompliance

Navigating the Overton Window: The Future of Cannabis Banking and Business Processes

The landscape of cannabis banking and business operations is rapidly evolving, mirroring shifts in public opinion and regulatory frameworks. As these changes continue to unfold, stakeholders within the industry are finding new ways to navigate the complexities of financial services, compliance, and market dynamics. The concept of the Overton Window provides a valuable lens through which we can understand these transformations. It highlights not just where current policies stand but also maps out potential future directions as societal norms and legal boundaries evolve.

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