Safe Harbor Financial has introduced a new banking program specifically designed for financial institutions looking to serve the legal cannabis market. This Fully Managed Cannabis Banking Program aims to simplify the process for community banks and credit unions by handling all operational and compliance tasks, allowing these institutions to accept cannabis deposits without increasing their internal workload or taking on significant risks.
The program is notable for providing a turnkey solution, where Safe Harbor oversees client acquisition, regulatory compliance and account management. By doing so, it allows partner banks and credit unions to hold deposits directly while alleviating concerns related to staffing and reputational risks tied to cannabis operations.
CEO Terry Mendez emphasized Safe Harbor’s experience in this field, stating, “For more than a decade, we’ve helped financial institutions navigate the complexities of cannabis banking.” He highlighted that the new program offers a compliant and efficient path for banks to engage with the growing cannabis industry.
Key benefits of the program include enhanced deposit growth through the vetting of licensed cannabis operators, comprehensive operational outsourcing to manage all aspects of banking services, and a reputational shield that protects financial institutions from direct association with cannabis. Additionally, the program enhances resource efficiency by reducing startup costs for participating banks.
Golden-based Safe Harbor has been engaged in cannabis banking since 2015, processing more than $26 billion in cannabis-related deposits across the United States. This launch represents an expansion of its previously private model to a broader range of financial partners. The program also facilitates a smooth transition for institutions that may want to exit cannabis banking by allowing them to transfer management responsibilities to Safe Harbor.
