TORONTO–Credit unions in Canada have been as reluctant as most in the United States when it comes to serving cannabis-related businesses. But now one Canadian CU is quietly moving to serve the market.
"Credit unions have a strong history of understanding unmet needs in a market and stepping up to make a difference," Rob Paterson, president and CEO of Alterna Savings, told the Montreal Gazette. "About a year ago we started to be approached by a handful of licensed producers that were struggling to find a banking partner. We analyzed the need, did our due-diligence, and realized we could do something to help this emerging industry."
All of the businesses Alterna deals with are operating 100% legally under the existing Health Canada framework for federally licensed producers, the Montreal Gazette reported.
"These are businesses that are operating for the benefit of many chronically ill Canadians," Paterson told the Gazette. "Without our support they would find it difficult to pay their bills, manage payroll, and secure real estate with the ultimate goal of supplying medicine to people who need it most…At the end of the day, these are like any other federally licensed business operating in our community. There are still a lot of players in this space trying to edge their way in illegally through dispensaries, store-fronts and other set-ups, and we absolutely do not support those. We only work with the handful of licensed producers, who currently can only distribute through the mail. As well we handle the odd industry consultant or advocacy group."
The Gazette reported that Alterna has strict protocols in place when bringing new businesses on board.
"We have a process compliant with all regulatory requirements. We conduct thorough due diligence where they have to provide evidence of their Health Canada licensing status, and everything is triple checked by our compliance team,” Paterson told the Gazette. He added that the due-diligence continues long after the companies come on board as members.