Cannabis Compliance For Financial Institutions

Simplifya: Streamlined Compliance Solutions for Financial Institutions

The Financial Crimes Enforcement Network (FinCEN) issued guidance in 2014 that outlines how financial institutions can provide banking services to Marijuana-Related Businesses (MRBs) consistent with their Bank Secrecy Act (BSA) obligations. This guidance requires every financial institution with customers in the cannabis industry must guarantee that their MRB clients are operating in compliance with state law.

 

Some of those key points include:

BSA Expectations: Financial institutions can provide services to marijuana-related businesses consistent with their Bank Secrecy Act (BSA) obligations. However, the decision to open, close, or refuse any particular account or relationship should be made by each financial institution based on specific factors relevant to that institution.

Due Diligence: Financial institutions engaging with cannabis-related businesses must conduct substantial and ongoing due diligence. This includes assessing whether the business:

Enhancing Transparency: The guidance aims to enhance the availability of financial services for marijuana-related businesses while ensuring compliance with federal and state law enforcement priorities.

 

Anti-Money Laundering (AML) Requirements: Under federal and state AML laws, financial institutions are required to report suspicious activities, including those related to non-compliant cannabis operations. Ensuring that their cannabis clients are compliant with state regulations helps financial institutions mitigate risks associated with money laundering and other illegal activities.

Risk Management: From a risk management perspective, financial institutions need to ensure that their cannabis clients are compliant with state laws and have a valid license in order to mitigate potential legal and financial liabilities.

Ensuring compliance with state cannabis regulations is essential for financial institutions to avoid potential legal repercussions and maintain regulatory compliance themselves.

At Simplifya, we have designed three powerful solutions to support financial institutions effectively bank and provide services to Licensed Operators while ensuring compliance. Those products are Simplifya Verified, Simplifya Market Guide and Simplifya Monitor.

 

Simplifya Verified is an independent system that allows all ancillary service businesses, such as financial institutions, insurance carriers, and others, to verify the status and validity of cannabis licenses across the country and ensure that their client base is in good standing. Click here for more.

 

Simplifya Market Guide, Simplifya Market Guide, is a regulatory platform tailored for businesses supporting the growth of MRBs (Marijuana-Related Businesses). Stay competitive in the fast-growing marketplace with crucial insights about U.S. cannabis markets. Our easy-to-read, state-by-state summaries cover vital topics essential for strategic expansion and successful business operations. Click here for more.

 

Simplifya Monitor: Simplifya Monitor is a bundled product that helps financial institutions verify licenses and ensure compliance with state cannabis laws for MRBs. Get peace of mind at an affordable price. Email us at info@simplifya.com to learn more..