February 14th, 2014 / Corona, CA / ACCESSWIRE / Extreme Biodiesel, Inc. (XTRM) today announced through its wholly owned subsidiary XTRM Cannabis Ventures that the U.S. Government has issued new rules aimed to improve banking in the Marijuana Industry.
The Obama administration issued new rules today aimed to ease the concerns of banks wanting to deal with businesses that legally sell marijuana, something the nation's banks have so far declined to do.
The new rules, issued by the Treasury and Justice Departments, are intended to "move from the shadows the historically covert financial operations of marijuana businesses," said Jennifer Shasky Calvery, director of Treasury's Financial Crimes Enforcement Network.
As of late, Marijuana vendors operate strictly with cash, creating a tempting target for thieves. Treasury Department officials say the revised rules should reduce the dangers associated with conducting an all-cash business.
Under the new regulations, banks wishing to conduct business with marijuana dealers must verify that they are properly licensed and must gather information about the types of products they sell and the nature of the customers they serve. Banks must also be on alert for any signs that the dealers are engaged in improper transactions.
Current rules require banks to notify federal regulators of suspicious activity by their customers, which currently would include any marijuana dealer because of the prohibitions under federal law. Under these new rules, the notices will still be required, but banks that believe a marijuana dealer is reputable will file a "marijuana limited" report.
If a bank believes a vendor is not behaving under guidelines, the bank should file a "marijuana priority" report, which could be based on such factors as greater revenue than local competitors or an inability to demonstrate that revenue is derived exclusively from legal sales.
"Every financial institution will have to make its own risk assessment and whether it makes businesses sense," said an administration official. "While it may not reassure every bank, we're proving an opening for those who want to serve this sector."
A Treasury Department official said demand has been especially heavy in Colorado and Washington, where retail sale of marijuana was is now legal under state law.
The Justice Department Friday directed federal prosecutors to focus their resources on suspicious dealers when considering filing charges of money laundering or other offenses against banking transactions by marijuana dealers.
XTRM President Joseph Spadafore stated "This news comes as a wonderful surprise. XTRM is positioning itself to be a leader in the Cannabis sector. We are laying out a master plan and doing our due dilligence on the 40 acre piece of land we opened escrow on this week. This is a great day for investors."
XTRM Cannabis Ventures a wholly owned subsidiary of Extreme Biodiesel has opened escrow on a 40 acre parcel in California with plans to cultivate Hemp and Marijuana as well as the construction of a massive indoor grow facility.
XTRM Cannabis Ventures plans to develop the 40 acres to accommodate up to five 20,000 sqft warehouses for indoor marijuana / cannabis growth, 20 acres for outdoor Hemp cultivation for biodiesel, and an industrial center to process marijuana / cannabis into smokeless products."
More information is coming out about the breaking development. Please check xtrmcannabisventures.com for updates.
Other Relevant Links
Letter from Congress to Obama
Legalization of Hemp
About Extreme Biodiesel and XTRM Cannabis Ventures
Extreme Biodiesel is an alternative fuel and recycling company. Our mission is to provide a cost-effective, high-quality alternative diesel fuel, create "green" jobs, reduce the environmental impact of fossil fuels and diminish US reliance on foreign oil. Extreme Biodiesel is currently repositioning itself into a holdings corporation with focuses on Bio Diesel, Real Estate, Technology and Cannabis Sectors
XTRM Cannabis Ventures is a wholly owned subsidiary of Extreme Biodiesel focused in the sector of Medical Marijuana, Cannabis and Hemp related products.
XTRM Cannabis Ventures Disclaimer
The Company would like to assure all investors that in all cannabis related actions the Company is conferring with counsel to be sure any business activities are deemed legal. XTRM advises all investors to see the website being developed at http://xtrmcannabisventures.com/
Investor Relations Contact[email protected] 855-736-7360
Safe Harbor Disclaimer Forward-Looking Statements are included within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, including words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements and involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. XTRM is under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.