Washington, DC, April 12, 2022 (GLOBE NEWSWIRE) — The National Association of Cannabis Businesses (NACB) and the Emerging Markets Coalition (EMC) have introduced National Cash Management Standards for the cash heavy cannabis industry. Though the U.S. legal cannabis market is projected to grow to $35B by 2025, a large majority of operations in licensed cannabis companies are still heavily cash-based.
A number of pending federal bills look to normalize financial services, including cash management, in this industry but each has its challenges. “Given the current federal legal status of cannabis, the multi-state, and federal financial services companies (e.g., banks, payment networks like Visa and MasterCard, and insurers) – are challenged to serve this market. While the SAFE Act is an encouraging start, the current wording still doesn’t fully address these issues, shared EMC CEO and co-founder Kirsten Trusko. Some point to the MORE Act for hope in legalization, and while it’s encouraging it has passed the House, it still has challenges in the Senate.
To develop this new standard, NACB and EMC partnered to gain deep expertise across both areas of cannabis-related business and financial services. EMC’s leaders have successfully driven to normalize financial services in other highly cash based and underserved markets.
“Without federal legalization, cannabis-related businesses have extremely limited options for safe and transparent cash management. Moreover, the federal government’s failure to act undermines legal markets across this country“ said Marie St. Fleur, Interim CEO of NACB. “The National Standards for Cash Management provides peer and expert reviewed cash management tools and protocols that cannabis-related businesses need to incorporate in their operations. This new set of standards will aid in helping cannabis-related businesses to be as compliant, efficient, and safe as possible in today’s regulatory environment while also preparing to work, or deepen their relationships with, financial institutions.”
NACB and EMC’s National Cash Management Standards include best practices in areas such as:
- Personnel background checks, skill set and training requirements
- Cash handling at Point-of-Sale (POS), vault and transport
- Security controls for POS end-of-day balancing to sales receipts
- Security controls for cash storage
- Techniques for optimal staff coverage for both customer service and security
- Optimal cash levels in the vault and point-of-sale stations
- Payments to staff, vendors, and taxing authorities
- Currency transaction reporting
- Recommendations on appropriate, effective cash safes
NACB and EMC share a commitment to providing workable and prudent standards for financial services to the cannabis industry. EMC and NACB’s next standards target is Payments for cannabis businesses. Through the partnership, both organizations hope to create a union between the cannabis and financial services industries that will catalyze business relationships in which both companies from both parties feel comfortable working together and can thrive.
Read and download the EMC/NACB Cash Management Standards here.
About the Emerging Markets Coalition (EMC): The Emerging Markets Coalition (“EMC”) is a 501c3 non-profit member-driven advocacy and educational organization for financial services in highly cash-based and under-served markets. EMC advocates and drives for the normalization, and increased accessibility to full financial services for cannabis-related businesses to be able to operate as other legal businesses in a growing, regulated, emerging market.
About the National Association of Cannabis Businesses (NACB): The National Association of Cannabis Businesses (NACB) is a member-driven trade organization which drives excellence in the cannabis industry. NACB’s mission is to identify, create and implement best practices and standards which promote business responsibility along with demonstrating to regulators what transparent regulations should look like. NACB works across all sectors to move the industry to be responsible, sustainable, compliant, and inclusive.