Even though the cannabis industry is booming, there’s still a considerable lack of reliable banking services for cannabis operators. The hurdles encountered by these businesses, especially in the area of legal compliance, often exceed their resources. However, regulatory compliance is an indispensable part of leading a successful company. Without it, you may face legal issues. Your reputation could take a hit and your earnings could drop. You may even have your license taken away.
Read on to learn how to stay compliant and conduct your financial operations in a transparent way. You’ll get your company on the right track and eliminate the common impediments that hold professionals in the industry back. With these obstacles out of the way, there will be nothing standing in the way of your growth.
How do you maintain regulatory compliance as an MRB?
Maintaining compliance is a big responsibility that will require your ongoing attention. It’s an extensive and complex process that includes multiple careful considerations, ongoing education, and precise data collection. You’ll also need access to reliable reporting software. First and foremost, you’ll need detailed insight into the federal, state, and local legislation that applies to the cannabis industry.
For example, it’s vital that you achieve BSA compliance. The Bank Secrecy Act (BSA) imposes strict regulation to prevent money laundering and terrorist financing. All US financial institutions have to follow it to make sure they’re not aiding these illegal activities. They have to collect data about transactions and report them to the authorities. To prevent problems with the law and keep your license from being compromised, a record of your money transfers should be kept and your financial operations should be correctly and consistently audited.
To facilitate compliance management, there are certain strategies that you can try. They involve meticulous planning, continuous learning, and strict monitoring. However, they’re ultimately worth it because they protect your company. Here are some tips to help you along:
- Stay updated: Legislation is changing by the minute. Keep up with the latest changes by signing up for relevant newsletters and visiting the websites of government agencies, like FDA, DEA, and USDA.
- Never stop learning: To succeed in such a dynamic field, you can never sit still. You and your team should attend seminars to learn new and improved compliance strategies.
- Keep an eye on the competition: Analyze how your competitors do things. Is there anything they’re doing more efficiently? You may be able to apply the same technique.
- Share your experience: Interact with peers from the industry. You can exchange views on successful techniques and discover novel ways of dealing with legal demands.
- Partner with the specialists: Although banks are reluctant to work with cannabis operators, there are innovative financial networks that can meet your need for banking solutions and automated compliance monitoring.
Where can I find streamlined banking services for cannabis operators?
For reliable banking support and strict adherence to regulatory compliance, get in touch with Confia. We’re a growing financial network that offers industry-specific services to businesses in the cannabis industry. Explore our membership options available to cannabis operators and go through our time-efficient application and approval procedures. You’ll soon gain access to our effortless platform and start managing your transactions smoothly.
As part of our comprehensive BSA program, we offer automated compliance reporting for filing, SOC-2 compliance procedures, and consistent monitoring of all transactions. In addition, you can have the full-scale backing of our financial services, including secure consumer payments, B2B and B2C transfers, payroll processing, and access to our excellent lending program. Reach out to us today to handle common compliance hurdles without hassle!