iStock photo illustration
A New Haven-based company specializing in cannabis banking compliance has added a consulting service to help financial institutions launch banking services for businesses in the marijuana industry.
Green Check Verified is offering Cannabis Launch Service to assist financial institutions in developing and launching cannabis banking programs that meet and adapt to regulatory requirements. GCV’s team includes former federal examiners, compliance officers and BSA/AML specialists, as well as former cannabis regulators, operators and analysts.
“We have a proven track record of partnering with financial institutions to launch and scale compliant cannabis banking programs,” GCV’s CEO Kevin Hart said in a statement. “We focus on regulatory compliance and operational efficiency to enable our clients to grow low-cost deposits, increase fee revenue, and deliver much-needed services to the businesses in their community. Beginning with the initial program development, each and every partnership receives the dedicated support and guidance necessary to engage with this high-risk industry.”
GCV has worked with over 15 financial institutions across the country to co-develop or review cannabis banking programs, according to the statement.
“Balancing the need to develop a robust cannabis framework with the desire to build a profitable program may seem daunting, but through proper planning, the right partner, and the right tools, cannabis banking can become a reality for financial institutions,” Paul Dunford, GCV’s director of program development, said in a statement.
In an email to The Commercial Record, Dunford said Connecticut has limited banking opportunities because the state does not allow recreational marijuana sales. Banking opportunities are limited to the 18 medical marijuana dispensary licenses and four growers.
Even with the limited opportunities, Connecticut has a positive atmosphere for marijuana banking, Dunford said, adding that GCV has partnered with several financial institutions in the state. He said the majority of marijuana businesses have access to banking services.
One advantage for cannabis banking is that Connecticut has fewer variables compared to larger states, Dunford said, noting that California has to contend with a marijuana black market reportedly three times the size of the legal market.
“We have fewer variables, which translates into more confidence for financial institutions that they can work with marijuana businesses while managing the applicable regulatory and operational factors,” Dunford said.
Because medical marijuana is classified as prescribed medication in Connecticut and not taxed, Dunford said, the size of the market is not known. He added that industry analysts estimate the total annual sales across all medical dispensaries to be about $110 million.
