GARDNER, Mass.–GFA Federal Credit Union here said it will begin offering cannabis banking services in its Massachusetts and New Hampshire markets through a partnership with Safe Harbor Services.
GFAFCU said it is the first in the two states to serve the cannabis industry.
Safe Harbor Services is a CUSO of Partner Colorado Credit Union in Arvada, Colo.
Safe Harbor of Massachusetts and Safe Harbor of New Hampshire will operate as part of a separate business entity created by the credit union, and will serve the banking needs of legal cannabis businesses, who previously were forced by federal laws to conduct all transactions in cash, creating a safety issue for employees and citizens alike, the two organizations said in a statement.
“When the Commonwealth legalized medicinal and recreational cannabis, we knew the multi-millions generated by this fast growing industry would soon become a safety issue, if unbanked,” said GFAFCU CEO Tina Sbrega. “As a credit union committed to helping people and serving the underserved, we found in Safe Harbor a partner who offered a viable and proven compliant-based cannabis banking option and a way to keep our communities safe. Our board of directors recognizes the need to provide banking services for the safety of our citizens in reducing the ‘cash on the streets’ and I applaud them for their vision and commitment to providing public safety. ”
Helping to Meet Complicated Rules
The two organizations said Safe Harbor helps financial institutions meet complicated federal banking law requirements for cannabis banking services by conducting centralized due diligence of prospective account holders and providing the tools needed to monitor large cash transactions.
“Safe Harbor has been refining this program under the scrutiny of regulators for many years,” said Safe Harbor’s Interim President and General Counsel Katrina Skinner. “We’ve worked collaboratively with GFA Credit Union in a slow, methodical way to adapt our program to meet their needs and ensure the safety and soundness of their institution.”
Safe Harbor Services said it is currently handling approximately $100 million per month in cannabis-related funds that are “validated, transparent and accountable.” Currently, Safe Harbor serves 160 clients, which include over 200 dispensaries, 160 cultivations and 65 manufacturers, along with an additional 70 plus ancillary service providers, in the cannabis industry, the CUSO said.