Cannabis Compliance for Banks and Credit Unions Part 2: Meeting Regulator Expectations

Bankers are the gatekeepers to the Cannabis industry. Because of this, banks and credit unions are the obvious focus point for regulators and law enforcement - follow the money. There is a large opportunity, beware though, providing services for Cannabis Related Businesses (CRBs) is a double-edged sword. Because the industry has yet to normalize and there’s not a lot of competition, CRB banking services can command an excellent flow of fees and deposits. But…because the industry has yet to normalize, banks and credit unions and responsible for a mountain of compliance requirements that can change by the month. This is NOT a compliance game that your team can catch up in with on-the-job training. It needs to be executed well from day one.

This is what we call “up and out” compliance. Regulators know that banks are the gatekeepers and that is where the regulators will keep their leverage. The relationship between bank and regulator has never been as critical as it is in Cannabis banking. There is one company that understands this relationship better than all the rest. Trust Exchange is proud to introduce our newest partner, Integrated Compliance Solutions (ICS). ICS is a financial technology, banking compliance and innovative payment solution provider helping financial institutions with complex solutions. From their website:

“ICS is your trusted, compliance partner offering a complete SEED-TO-BANK™ regulatory solution with our BSA software application customized to meet the needs of financial institutions. As the leader in legal cannabis banking, our mission is to provide legitimate financial services and solutions for marijuana businesses while reducing the risks and overhead associated with these high-risk accounts.”

Their experience in financial services and payments technology allows them to apply the heightened federal requirements to preferred providers that meet very strict requirements. The result: a competitive, complete, and stable set of services that compliment merchant goals and that can rapidly scale to a state, regional or nation-wide deployment. As the most complete and well-respected SEED-TO-BANK™ compliance partner, ICS is been used by more banks, more marijuana-related businesses, and for longer than any other competitor in the space.

How does ICS work with Trust Exchange?

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This is powerful. The partnership gives a bank or credit union two advantages. First, ICS has built their enhanced due diligence workflow on the Trust Exchange Platform, allowing an institution to on-board CRBs in a highly secure, cloud-based environment. Providing the bank or credit union a real-time dashboard of the CRBs progress. Second, because the enhanced due diligence is built on the Trust Exchange Platform, it allows the compliance team monitor all 3rd-party compliance from the same log-in and with the same functionality, easily switching from your ICS module and related dashboards to your routine 3rd-party compliance dashboards.

Join us on October 10th at 12:00 EST as we join Ralf Kaiser and the team from Integrated Compliance Solutions for an introduction of how institutions should enter Cannabis Related Business Banking and what regulators should expect from those institutions. There will be plenty of opportunity