The cannabis industry is experiencing a massive growth spurt. However, this isn’t to say that there aren’t significant hurdles standing in the way of budding marijuana-related businesses (MRBs). Staying within legal boundaries is vital in order to prevent getting in trouble with the law, ruining your reputation, and hurting your business.
Gaining access to transparent banking can move your cannabis business forward by ensuring compliance in all of your transactions. Although banks are unlikely to be of help here, there are solutions to the issue of maintaining financial compliance as an MRB.
AML stands for Anti-Money Laundering Act. It is used interchangeably with BSA, which is an abbreviation for the Bank Secrecy Act. It was passed by Congress in 1970 with the aim of preventing money laundering. BSA AML compliance is enforced by the Financial Crime Enforcement Network. They make sure that financial institutions follow the essential regulations imposed by this act:
AML rules enable the authorities to identify whether a financial crime, such as money laundering, securities fraud, or terrorist financing, is being committed. Businesses, including MRBs, have to adhere to these rules to prevent getting in trouble with the law.
If a cannabis business violates any of the AML BSA regulations, it could be at risk of legal sanctions. In this case, your business operations could be jeopardized and even your license could be taken away. Whether you cultivate, distribute, or sell, it’s vital that your business stays compliant with all federal, state, and local legal requirements.
Taking care of compliance can be overwhelming for MRB owners. These regulations are complex and prone to change, which makes them difficult to keep track of. The reporting tools used by the professionals in the cannabis industry are often unreliable, too.
However, there are several tips that can help MRBs with their compliance challenges, and all of them involve careful considerations and preparation:
Keeping a record of all of your financial operations and ensuring that they follow the legal framework is a hugely beneficial practice. Although tricky, it will spare you a lot of trouble, money, and time in the long run.
Since banks won’t supply MRBs with ongoing support, using the services of a cannabis-friendly banking service provider gives you a way out. Green Leaf Payroll & Business Solutions offer cannabis businesses a streamlined and innovative approach to human resources and financial operations. As part of our network, you can conduct business without the usual barriers pitted against the companies in the field.
We maintain strict compliance with the relevant regulations in the field of MRB banking. Instead of going through the hassle of fiddling with rules and regulations on your own, you will have a team of experts to meet every demand imposed by compliance laws. Our team will also handle your payroll procedures, leaving you more time and energy to market and develop your brand. Focus on making a name for yourself in the cannabis sector and leave the rest to us. We’re the trustworthy ally you’ve been looking for!
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