New Mexico Credit Union First in Nation to Introduce Protocols for Cannabis Banking, Strike Against Illegal Dealers

By Jelena Martinovic

On Monday, New Mexico Attorney General Hector Balderas announced that the New Mexico-based US Eagle Federal Credit Union will become the first financial institution in the country to be certified for outstanding US banking protocols for banking cannabis and hemp.

The certification is part of a financial services certification program run by the Policy Center for Public Health & Safety in collaboration with attorneys general, as well as a broader certification effort run by ASTM International and PH&S.

Photo by eldadcarin / Getty Images

“The marijuana industry is about to explode in New Mexico, and it’s important to have bank collateral to curb illegal and criminal behavior,” Balderas said. “This is an important first step in partnering with legally compliant companies in the market.”

Approved by Safe Harbor Financial, a subsidiary of partner Colorado Credit Union, the certification brings banking and financial transparency to ensure the security of the monetary system for hemp and cannabis banks.

Marsha Majors, President and CEO of the US Eagle Federal Credit Union, said that credit unions “were created to serve the bankless and underserved population.

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“The cannabis industry has been bankless and underserved for years, which often has a negative impact on public safety in communities where cannabis is legal,” added Majors.

State and federal agencies accept the overall certification model as the standard for adhering to and implementing general risk mitigation strategies.

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The curriculum focuses on the following:

• The highest compliance standards that meet the expectations of the BSA and FinCEN guidelines.
• Mainstream custody options for cannabis-related businesses, including plant-to-plant and ancillary service providers, ensure industry accountability, transparency and reporting.
• Monitoring the internal activities of all employees involved in the compliance program to ensure full compliance with the processes to protect US Eagle.
• Monitoring cannabis customers to ensure they are internally prepared to prevent or imply enforcement priorities previously recorded in the Cole Memo and still mentioned in the Financial Crimes Enforcement Network (FinCEN) guidelines.
• Creation of a transparent environment for all activities with auditors, auditors and other third parties who work with the financial institutions in order to build comfort and understanding and ultimately improve processes in the long term.
• Join a network of cannabis banking financial institutions that share and develop cannabis banking best practices, and use this shared network to support one another with security and solidity.
• Digitization of financial transactions at the highest level to increase transparency.
• Make sure the records are thorough, easy to navigate, and readily available to meet law enforcement requirements such as subpoenas and inquiries.

This article originally appeared on Benzinga and was republished with permission.