Cannabis lenders, like other entities operating in the cannabis industry, must comply with a variety of regulatory requirements to ensure they operate within the bounds of state and federal laws. Lenders must stay informed about evolving regulations and ensure robust compliance programs to mitigate risks and support the sustainable growth of the cannabis industry.
The following governing bodies provide regulatory guidance for cannabis lenders:
State Cannabis Regulatory Agencies: Each state with legalized cannabis has a regulatory body overseeing cannabis operations, which includes guidance for financial institutions and lenders providing services to cannabis businesses. These agencies ensure compliance with state-specific regulations. Some examples are: California Department of Financial Protection and Innovation (DFPI), Colorado Marijuana Enforcement Division (MED), and Washington State Liquor and Cannabis Board (LCB).
State Financial Regulatory Agencies: These agencies regulate state-chartered financial institutions and provide guidance on lending practices to cannabis businesses. Some examples are: California Department of Business Oversight (DBO), Colorado Division of Banking, and Washington State Department of Financial Institutions (DFI).
Federal Financial Regulatory Agencies: Financial Crimes Enforcement Network (FinCEN), Federal Reserve, and Office of the Comptroller of the Currency (OCC).
State Tax Authorities: These agencies provide specific guidelines for the taxation of cannabis businesses and ensure that lenders understand the tax implications of their lending practices. Some examples are: California Department of Tax and Fee Administration (CDTFA), Colorado Department of Revenue, and Washington State Department of Revenue.
At Simplifya, we have designed three powerful solutions to support lenders effectively navigate a few of the complex regulatory hurdles. 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 lenders, payroll providers, online retailers, 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 licensed cannabis 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 lenders verify licenses and ensure compliance with state cannabis laws of their licensed cannabis customers. Get peace of mind at an affordable price. Email us at info@simplifya.com to learn more