Legal Cannabis Industry Compliance Auditing for Banks and Credit Unions
Much has been written about the legal cannabis industry's banking problem. The federal government currently puts a heavy burden on financial institutions that have taken the bold step and have selectively opened business accounts. These institutions are now responsible for insuring that their cannabis business accounts are complying with all state laws and adhere to the FinCEN guidelines and clarification regarding the BSA's Cole Memo.
“The legal marijuana industry is worth billions. However, most financial institutions have been reluctant to take on the costs and risks of insuring compliance - until now”
our consultants and auditors can provide your financial institution with comprehensive compliance reviews and audits
- Comprehensive cannabis business license compliance review with management, state and federal regulatory authorities
- We review security plans, product and cash handling procedures, restricted access to product, seed to sale tracking and records management.
- Security surveys, risk assessments and compliance auditing
- If the business is not compliant due to expansion, changes to business operations, or changes to regulatory requirements, we make recommendations to correct deficiencies. We will follow up and verify with the authority having jurisdiction to verify correction and compliance.
- Accounting practices audits and financial records reporting
- Certified finance auditors will review financial records to insure acceptable accounting practices are being followed, and to insure that no product or funds are being diverted to criminal enterprises or out of state.
- Verify business financial and legal structure
- Determine business structure, funding, stakeholders and financial structure to ensure against money laundering or other criminal activity.
- Background checks on executive officers, operations management and staff
- With Executive officers, and Senior Management to verify no criminal history, violations of business and tort laws, no pending civil or federal legal actions, sanctions, fines or liens.
- Check that operational management and staff do not have criminal history.
- Security & safety policies and procedure review
- Access control, rules and regulations for staff and vendors, security and safety training, and more.
- Physical security and CCTV surveillance systems review for compliance
- Confirm all security equipment is functioning properly. Review Security Guard vendor training and post orders.
- Evaluation of supply chain security
- Verify that they are not fronts for or laundering money for criminal enterprises. Verify that proper seed to sale tracking practices are followed, and verify that product is securely stored and transported. Access to product is restricted.
- Review of cash handling procedures
- Every dollars can be tracked and accounted for. No moneys diverted or from illicit business activity. Review how cash is stored and transported.
- Review how sales transaction are documented and recorded. Verify that Point of Sale Systems and CCTV surveillance are functioning properly.
- Environmental Hazards
- Nauseous odor abatement, proper hazardous material storage, safety procedures, and legal disposal.
- Code compliant fire protection.