While all eyes in the cannabis community remain keenly locked onto Congress and the long anticipated SAFE Banking Act, it can be argued that there’s an a relatively overlooked step that could hold substantial potential for the industry as it is today. Seen by some as an effective means to improve banking service access for certain industry players, it simply involves a revisit to the three-tiered structure commonly adopted in banks’ compliance programs.
In its current state, the proposed three-tiered structure breaks down into three fundamental tiers, each with distinct objectives and responsibilities. The expectations of the compliance programs’ rigour are also built in tiers, reflecting the compliance risks associated with various customer types within the industry.
It has been suggested that with this structure, banks could potentially provide key services to certain industry participants, hence expanding the financial service access within the cannabis industry. While this may not be the silver bullet solution eagerly sought by many, it provides an immediate implementable measure that could potentially minimize some of the existing hurdles faced by the industry before Congress successfully passes the SAFE Banking Act.
Will this tier adjustment turn out to be an effective means of improving access? Would there be considerable hurdles to its implementation? There remain quite a few unanswered questions, keeping the industry as a whole on its toes.
For a more comprehensive approach to the issue, it may be useful to look at the article “A Simpler Approach To Expanding Banking Access” published by Farella Braun + Martel LLP which was originally published on Marijuana Venture on August 31, 2023. Read the full article here.
Above all, it is crucial to remember that the landscape of cannabis banking is continually evolving and policymakers, industry leaders, as well as legal professionals must remain vigilant and proactive, making sure they are getting a full and up-to-date picture to drive forward any effective change.