Helping credit unions navigate the challenges of marijuana-related business banking
With the legal cannabis market predicted to experience explosive growth of $57 billion worldwide by 2027, credit unions must decide whether they should provide financial services to legitimate cannabis-related business members despite its illegality at the federal level. Regardless of your credit union's decision to bank or not bank this industry, it's important to understand the activities, risks and requirements associated with marijuana related businesses.
Empowering credit unions to better detect conspicuous activities
Maintaining oversight of Marijuana-Related Businesses (MRBs) within your organization is an added but necessary process to minimize the risk to your credit union. Due to the challenges of banking restrictions, a business has incentive to purposely obscure its business intent at account opening in order to access the banking system or an established business account may revamp its business model from a non-MRB to an MRB without informing the credit union. A higher level of scrutiny must be deployed to detect nefarious activity within your existing member base. Our MRB account analysis is calibrated to identify MRB accounts within your own customer base to ensure there is compliance with BSA obligations.
Informed decision making minimizes your credit union's risk exposure
It's essential your credit union take a proactive approach and conduct the due diligence required to either bank the cannabis-related industry or exit the business altogether. Our team of compliance advisors will conduct an MRB account analysis, comparing your membership records to reliable industry resources. This proven process includes identifying your potential risk exposure and providing resources to ensure compliance in this industry.
MRB Account Analysis Key Features:
- Utilizes a combination of state registries, industry databases and curated key words to identify potential MRBs among your current membership
- Equips credit unions with information to make an informed decision about providing financial services to this industry
- Identifies your potential exposure and provides resources to ensure compliance in this new and growing industry
- Identifies MRB accounts within its own customer base in cases where:
- The business purposely is obfuscating its business intent at account opening
- An established business account changed its business model from a non-MRB to an MRB without informing the credit union
- Potential lapses in the credit unions processes and procedures exist
To get started, contact us today by visiting ComplianceConsulting@CUSolutionsGroup.com