First US credit union accredited to conduct cannabis and hemp banking transactions

New Mexico attorney general Hector Balderas announced Monday that the state’s Eagle Federal Credit Union will be the first financial institution in the United States to be accredited for outstanding monetary banking protocols in the cannabis and hemp business in the United States. This accreditation is one of the many financial services certification programs organized by the Policy Center for Public Health and Safety. The center is jointly managed by the New Mexico Attorney General, while ASTM International and PH&S are responsible for implementing broader certification efforts.

A blow to illegal traders

With the latest announcement, it appears illegal operators are in for a shock in New Mexico. Balderas said the marijuana industry in the state is experiencing a resurgence and will soon explode. Before this massive explosion, the government made efforts to ensure banking regulation to curb illegal and criminal activity in the cannabis industry. Balderas insisted that the establishment of bank protocols for the state’s cannabis industry is the most important step before partnering with legal players in the cannabis market.

Karen White, executive director of the Attorney General Alliance, said one of the basics of market validation is being aware of the specific financial institutions that follow procedures and regulations that are consistent with state and federal laws. The cannabis industry must also be able to do banking and receive financial services, as well as make institutional investments. These newly developed protocols will guide financial institutions and their insurers in their dealings with the cannabis industry.

What advantages this has for the industry

This update is supported by Safe Harbor Financial, a subsidiary of partner Colorado Credit Union. The accreditation provides institutions that rely on hemp and cannabis with banking and financial clarity and guarantees the security of the monetary system. US Eagle Federal Credit Union President and CEO Masha Majors said credit unions were originally created to provide banking services to the unsanitary and underserved population. The cannabis industry falls under this group.

Because of the drug’s status as a federally banned substance, the cannabis sector across the country has been denied banking services for many years. The industry’s decade-long bankless and underserved status has had a negative impact on public safety across the country, including states and communities where marijuana is legal. The overall certification model is accepted by state and federal agencies as a compliance standard and is used in implementing general risk mitigation strategies.

Details of the new protocols

The new protocol follows the following criteria:

• Make sure the records are complete, easy to navigate, and readily available to meet law enforcement requirements such as subpoenas and inquiries.

• The availability of mainstream depot options for cannabis-related businesses, including plant touch and support service providers, to ensure industry accountability, transparency and reporting.

• Creating a simple background for all activities with auditors, accountants, and other third parties working with financial institutions allows them to build mutual trust and understanding that ultimately improves processes over time.

The organizations involved

Safe Harbor Financial is a key agency that leads the cannabis industry by developing efficient financial systems that follow guidelines from the U.S. Department of the Treasury and FinCEN. Sundie Seefried, CEO of Safe Harbor Financial, is a premier law enforcement expert and resource officer on money laundering issues in the cannabis and hemp industries.

The oldest not-for-profit credit union in New Mexico is the US Eagle Federal Credit Union. Founded in 1935, US Eagle has ten locations in Albuquerque, Bernalillo, Farmington and Santa Fe and offers a full range of financial products and services. With over $ 1.4 billion in net worth, over 80,000 members, and three-time Best-in-State Credit Union awards, US Eagle is where people matter most.

The Attorney General’s Office is a body that encourages meetings, discussions, and forums in the Torn General Community. The committee also acts as a host forum for all non-partisan cooperation activities within the AG community. She fosters all of these relationships and activities through social gatherings, webcasts, and work groups.

Cannabis Legislation in New Mexico

A bill signed by Governor Bill Richardson in 2007 legalized the use of medical marijuana. A 1978 law allowed medical use, but only through a federally approved research program. It was the first state to pass a medical cannabis law.

Cannabis was legalized for recreational use in New Mexico on June 29, 2021. That law made New Mexico the 17th state to legalize adult cannabis in the United States. On April 12, 2021, Governor Michelle Lujan Grisham House signed Bill 2, the Cannabis Regulation Act, which legalizes recreational use. The first license sale will take place until April 1, 2022.

Bottom line

In a statement shortly after the recreational consumer bill was passed, Governor Lujan Grisham pledged to make recreational cannabis legislation a major step in transforming the state’s economic future.

This newly introduced financial banking protocol is an essential part of changing the New Mexico cannabis industry for the better. The state workforce, the economy, and the future of the cannabis industry depend on the implementation of these new protocols. Other states will take New Mexico cues and develop unique protocols to ensure their legal cannabis industry is no longer bankrupt and underserved.

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