WASHINGTON, July 13, 2023 – PRESS RELEASE – The Cannabis Financial Industry Group (CFIG), a coalition of financial institutions and associated risk mitigating service providers serving the regulated U.S. cannabis industry, announced July 13 the publication of baseline banking standards for financial institutions interested in or currently banking the state-legal cannabis industry.
Entitled “Program Standards for Cannabis-Serving Financial Institutions,” this resource will help financial institutions better understand the strict compliance cannabis banking programs must adhere to presently as well as in the future even once the SAFE Banking Act or other federal cannabis policies shift.
“Since the formal launch of CFIG earlier this year, our members have been actively engaged in congressional conversations as the SAFE Banking Act is moving through the Senate, shining a light on the high cost of compliance and extreme due diligence involved in existing cannabis banking programs,” CFIG Executive Director Saphira Galoob said.
“The release of CFIG’s standards could not be more timely as this bipartisan bill will hopefully advance with the urgency the situation demands and as more states establish or expand their legal cannabis programs,” she said. “It is vital that lawmakers, regulators, and interested banks understand the processes in place to report suspicious activities and ongoing anti-money laundering efforts as the cannabis industry continues to adhere to strict self-regulations in the face of federal prohibition.”
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“As more financial institutions express interest in serving the state-legal cannabis industry as more programs come online, and as we look towards potential federal cannabis banking legislation and the administration’s scheduling review shifting federal regulations pertaining to marijuana’s treatment, those of us who have been servicing this industry over the years want to make sure the importance of compliance and the cost of compliance are made crystal clear,” said Alan Hyatt, chairman of CFIG and Shore United Bank.
“As emphasized in our banking standards, financial institutions must have a full understanding of an ever-shifting regulatory and industry environment, requiring a well-defined, well-structured, and well-documented program to adhere to the transparency, compliancy, and adaptability banking cannabis demands,” he said. “We look forward to continuing to be a resource for lawmakers, regulators, and our peers currently banking or looking to serve cannabis-related businesses as we continue to provide much-needed financial services to this growing industry – and we hope Congress will help us in this effort by finally passing the bipartisan SAFE Banking Act into law.”
