Both bankers and customers should expect high levels of transparency in their operations and interactions. This can pay additional dividends down the line, as strong, open relationships yield positive referrals. Be Prepared for Increased Competition As an emerging industry, banks should anticipate ongoingmarket changes and be prepared to adapt to remain competitive. Specifically, there is significant interest in howchanges to federal cannabis policy will impact banking. Whilewe do not believe the passage of federal reform, such as the SAFEBanking Act, would change the compliance and due diligence required for this industry, it would be an important step toward removing the regulatory uncertainty in themarket and would open the door formore financial institutions to serve the industry. With the U.S. cannabis industry projected to reach $41.4 billion by 2025 and strong growth projected for Missouri (and neighboring Illinois), you can be certain that more financial institutions will enter this market in the coming years. Increased competition typically comes with more competitive terms for the customer, so you’ll want to be ahead of the curve and be ready to sharpen your pencil when that time comes. As President andChief ExecutiveOfficer of ShieldCompliance, Tony leads day-to-day operations and is the company’s principal product architect. Having served as a senior executive at aWashington State-based community bank for over 25 years, Tony has in-depth knowledge of the banking industry and the regulatory and compliance requirements for high-risk industries. Today he brings that knowledge to financial institutions serving and considering serving the legal cannabis industry. ■ Meeting compliance requirements includes developing the systems, applications, and onboarding processes that allow you to vet potential customers and access critical customer and transaction data, all while delivering a positive customer service experience. BSA/AML Compliance As a banker, you’ll be responsible for ensuring your cannabis clients are operating within state guidelines. Having systems and processes to help you reconcile data frommultiple sources can help you do that efficiently and accurately. Investing in specialized BSA/AML compliance technology will help your bank operate more efficiently, allowing compliance staff to focus their time, energy, and brainpower on judgmental decision-making, analysis, and customer service. Staff Training While technology will help make your staff more efficient, you’ll also need to hire or train specialized cannabis bankers who have a deep understanding of the industry. This knowledge will help them better monitor customers’ business activity while allowing them to deepen their customer relationships. “While technology will help make your staff more efficient, you’ll also need to hire or train specialized cannabis bankers who have a deep understanding of the industry. “ Scan the QR code to download your copy of the Shield Compliance Cannabis Banking Playbook. A Cannabis Banking Playbook The emerging legal cannabis industry brings significant growth potential, challenging operational demands and complex regulations. But cannabis banking does not have to mean high-risk banking. Informed by the experiences of pioneer bankers, the Shield Compliance Cannabis Banking Playbook defines a path forward for banks to serve cannabisrelated businesses compliantly while gaining financial rewards from this market. December 2022 | 21
RkJQdWJsaXNoZXIy ODQxMjUw