"High" Risk, It's Inevitable

As the cannabis industry continues to grow, it is becoming increasingly important for financial institutions to prepare for federal approval of this high-risk product. With recent bank collapses, it is more important than ever that financial institutions understand all the regulatory and operational requirements before taking on such a risky endeavor with such "High" rewards. The fear of regulatory fines or findings due to the lack of proper transaction monitoring is real with fines in the tens of millions for processing "prohibited transactions" like cannabis. However, the uncertainty of protection is reduced with the recent reintroduction of the Safe Banking Act (SBA) in the United States Congress. If passed, it would provide legal protection for financial institutions that choose to work with cannabis businesses.