MARIJUANA BANKING SUMMIT J UNE 6, 2019 R ivers Casino | Pittsburgh, Pennsylvania It’s time we talk. It’s time we come together to tackle the issues head-on. Hosted by Integrated Compliance Solutions, LLC and Sterling Compliance, LLC SUMMIT AGENDA Opening Remarks Ralf Kaiser How Did We Get Here? Taylor Biehl The U.S. Cannabis Industry from Illegal to Legal Marijuana 101: You Don't Know What You Don't Know Michael Patterson Addressing the Cannabis Dichotomy for U.S. Financial Institutions Angela Lucas MRB Banking Needs, Challenges & Opportunities Ralf Kaiser Establishing the MRB Component of Your BSA | AML Program Angela Lucas Joseph Kopko MRB Insurance Programs Designed Evan Muffly to Manage Risks for Financial Institutions How to Automate and Scale Your Compliance Strategy Christopher Johnson Marijuana Banking Panel Michael Patterson Angela Lucas Christopher Johnson Evan Muffly Ken LaRoe Cannabis Banking: It CAN Be Done! Francis Grady ABOUT THE SPEAKERS Ken LaRoe Ken LaRoe has been dedicated to the economic well-being of Central Florida for more than 30 years. Mr. LaRoe has lent his expertise to several area businesses, and has created numerous banking jobs, supported various non-profit organizations across the region, and helped to grow well-established Central Florida banks. In 2009, Mr.LaRoe opened First Green Bank after being granted the last bank charter in the state of Florida, and that is where his story becomes woven into today's Summit... Michael Patterson, NHA, OTR/L | US Cannabis Michael is a subject matter expert in the global cannabis industry. With 25 years as a healthcare executive and his expertise in the hemp and cannabis industries, Mr. Patterson has been a sought-after authority, addressing audiences at numerous conferences, including the 2019 UBS Global Consumer and Retail Conference, FBI National Academy, CBD East Convention. Taylor Biehl | Capital Alliance Group Taylor Patrick Biehl is the Legislative Programs Director for the Capitol Alliance Group and co-founder of the Medical Marijuana Business Association of Florida. With over a decade of direct legislative experience with major appropriations issues and a concentrated focus on local governance, property taxation, and agency regulation issues, he has proven himself to be a tireless advocate for clients’ interests. Francis Grady | Grady & Associates Francis Grady combines government and private practice experience as an attorney with the Federal Deposit Insurance Corporation in Washington, D.C and as an attorney in private practice. Francis provides bank regulatory, corporate and securities law representation to more than 100 regulated financial institutions across the country in matters involving bank supervision and bank regulatory enforcement actions, BOLI, executive compensation, merger transactions, securities offerings and shareholder relations. Christopher Johnson | Integrated Compliance Solutions, LLC Chris is the Co-Founder and Chief Executive Officer for Integrated Compliance Solutions, LLC. Prior to joining ICS, Chris was responsible for senior leadership functions across the processing and financial services industry. Chris bring 20 years of experience in the financial services and a wealth of knowledge and experience in banking, processing, system design and operations. ABOUT THE SPEAKERS Angela Lucas | Sterling Compliance, LLC As a former bank regulator and seasoned consultant, Angela's knowledge of regulatory compliance, risk management and investment advisory services has established her reputation as a leading resource with the financial institution consulting industry, spanning consumer protection and anti-money laundering statutes, fraud and marijuana banking issues. Joseph Kopko, MS, CSP | HUB International As EVP, Client Services & Business Development, Joe has nearly 20 years of experience proactively managing safety, risk, and employee health. Joe oversees the strategic servicing of clients to overlap their insurance program with the appropriate technology and service strategies that will create a proactive risk management experience. His primary specialty is in developing leadership and management teams to support a sustainable culture of prevention and resiliency. Evan Muffly | HUB International Evan is EVP and Practice Leader for HUB International's Captive Practice. Mr. Muffly is responsible for providing strategic direction, growth and execution of the practice across he HUB organization globally. Evan has worked in multiple facets of the captive insurance industry, including business development, domicile regulation development, feasibility studies, captive formation, administration and ongoing management. Ralf Kaiser | Integrated Compliance Solutions, LLC Ralf has been involved in the investment and financial industries for 30 years with a focus on capital raising, investment management, start-ups and the capital markets. Ralf joined ICS in 2018 and has been actively involved in the capital raising, market development and bank sales strategies for the firm. Mr. Kaiser brings a wealth of knowledge and experience to the firm in investment, financial services, sales & marketing and operations. SUMMIT HOSTS Integrated Compliance Solutions, LLC Integrated Compliance Solutions, LLC (ICS) is one of the leading marijuana banking compliance firms. Providing complete compliance solutions for banks, credit unions, and other financial institutions, ICS is the true SEED TO BANK™ strategy for marijuana financial institutions. ICS has worked with numerous banks and credit unions in many of the legal states to establish MRB banking compliance programs and successfully accept MRB deposits. www.icslv.com | 702.844.8723 | [email protected] Sterling Compliance, LLC Sterling Compliance is a strategic risk management partner to our community bank and credit union clients. With over 80 years of combined experience as bank regulators, bankers and consultants, we bring a balanced perspective in our approach to compliance and credit risk management. Our clients rely on us to help them develop, assess and manage effective regulatory compliance programs, provide credit review services, and stay ahead of the regulatory examination cycles with forward-looking, timely information and guidance on pending or changing regulations, emerging risks and reviews of current practices. Through a combination of strategic planning, transactional reviews and audits, our Navigator newsletter and multiple delivery channels for training, we provide a full suite of services to maximize the efficiency and effectiveness of your compliance function. Sterling has been on the forefront of developing tools and education for banks and credit unions seeking to manage the risk associated with marijuana-related businesses in the current regulatory environment. www.sterlingcompliancellc.com | 412.356.3787 | [email protected] CONTACT THE SPEAKERS T A Y L O R K E N M I C H A E L B I E H L L A R O E P A T T E R S O N Capitol Alliance Group, Inc First Green Bank US Cannabis Pharmaceutical Office: 850.224.1660 [email protected] Research and Development LLC Cell: 352.281.1773 Office: 321.960.9699 [email protected] [email protected] A N G E L A C H R I S T O P H E R J O S E P H L U C A S J O H N S O N K O P K O Sterling Compliance, LLC Integrated Compliance Solutions, LLC HUB International Limited Office: 412.356.3787 Office: 702.844.8723 Office: 412. 992.2838 Cell: 412.855.7740 Cell: 980.229.5978 Cell: 724-.422.0554 [email protected] [email protected] [email protected] E V A N R A L F F R A N C I S M U F F L Y K A I S E R G R A D Y HUB International Limited Integrated Compliance Solutions, LLC Grady & Associates Office: 412. 992.2838 Office: 702-844-8723 Office: 440.356.7255 [email protected] Cell: (780) 938-7722 Cell: 216.308.0095 [email protected] [email protected] THANK YOU! 1 NOTE S The U.S. Cannabis Industry from Illegal to Legal How Did We Get Here? Florida as Our Case Study 2 NOTE S Florida’s Official Source for Responsible Use 3 NOTE S MMBAFL: Who We Are • The Medical Marijuana Business Association of Florida (MMBAFL) was founded in 2014 as a membership organization to: protect and promote a rational and compassionate approach to Florida’s emerging medical marijuana regulatory framework for patients; serve as a responsible business resource for policy makers; identify best practices from other states which have authorized medical cannabis; support and grow business opportunities for the emerging medical marijuana industry. 4 4 NOTE S U.S. Marijuana Law: A Short History The effort to curtail Mexican immigrants prompted the Marijuana Tax Act of 1937 which effectively banned its use and sales. Later it was ruled unconstitutional. It was replaced with the Controlled Substances Act in the 1970’s which established Schedules for ranking substances according to their dangerousness and potential for addiction. Cannabis was placed in the most restrictive category, Schedule I, In 1972, the Schafer Commission declared that marijuana should not be in Schedule I and even doubted its designation as an illicit substance, however President Nixon rejected the findings. Prior to 1937, cannabis had enjoyed a 5000 year history as a therapeutic agent across many cultures. In this context, its blip as an illicit and dangerous drug was dwarfed by its role as a medicine. 5 5 NOTE S State Ballot Initiatives In 1996, California became the first state to approve the use of marijuana for medical purposes, ending its 59 year reign as an illicit substance with no medical value. Following CA, four states (Washington, Oregon, Alaska, Maine) and D.C. passed medical marijuana laws In response to President Raegan’s “War on Drugs”, during which new federal mandatory minimum sentences were introduced, states began legalizing the use of medical marijuana leading to 8 more states passing medical marijuana laws from 2000-2010. On November 6, 2012, Colorado and Washington became the first states to legalize recreational use of cannabis, regulating cannabis in a way similar to alcohol, allowing possession of up to an ounce for adults ages 21 and older.