Legal cannabis investment carries POCA risk

Published by: Angela Bilbow at 30/10/2019

As legal cannabis becomes a multi-billion dollar industry in the US, Canada and beyond, UK investors...

As legal cannabis becomes a multi-billion dollar industry in the US, Canada and beyond, UK investors in cannabis corporations risk falling foul of the Proceeds of Crime Act. CDR speaks to corporate crime practitioners about potential exposure.

With the size of the global legal cannabis industry estimated to reach upwards of USD 65 billion in the next five years, and mass legislative reform in the United States and Canada having led to an increase in companies listing on reputable exchanges such as NASDAQ, many institutional and individual investors in the United Kingdom already have skin in the game.

However, without clear guidance as to the legality of receiving legal cannabis-related profits or dividends into UK bank accounts, there are concerns over whether participating in such investment activity is in breach of the UK Proceeds of Crime Act 2002 (POCA).