These Two Companies Launch Program To Provide Banking Access To Underserved Cannabis Companies

Pasadena Service Federal Credit Union and StandardC will form a social equity program to help underserved cannabis companies gain fair access to banking and financial services.

Despite delays on the part of the U.S. Congress to pass cannabis banking reforms and broader legislation for marijuana legalization, most notably the SAFE Banking Act and the Cannabis Administration and Opportunity Act, Pasadena Service FCU has taken the initiative to serve underserved communities that have been adversely impacted by the War on Drugs.

"While Congress deliberates, our credit union is doing what we can to help level the playing field by providing access to banking to those who truly need it," Jamaal Byers, director of compliance for Pasadena Service FCU stated.

While cannabis remains restricted under the Controlled Substances Act, the Financial Crimes Enforcement Network, which enforces the Bank Secrecy Act and its anti-money laundering requirements, issued guidance in 2014 that "…clarifies how financial institutions can provide services to marijuana-related businesses consistent with their BSA obligations."

Robert Baron, the chief experience officer of StandardC, noted, "In launching its social equity program, Pasadena Service FCU is solving a fundamental problem faced by the cannabis industry, particularly those businesses that don't have access to the banking system. StandardC is proud to support the efforts of Pasadena Service FCU and to enable financial institutions to serve this underserved market."