Issue link: https://nebusinessmedia.uberflip.com/i/1070189
www.HartfordBusiness.com • January 14, 2019 • Hartford Business Journal 15 high as $22 billion by 2022, the marijua- na-industry tracking website said. Connecticut is not among 10 or so states that have legalized recreational cannabis sales to adults. However, Gov. Ned Lamont and lawmakers are expect- ed to take up the issue of legaliza- tion during this year's legislative session. Lamont, a Democrat, said he supports legal- izing recreational use of the drug. Despite the uncertainty, some financial institu- tions have made inroads serving the industry, and are willing to discuss it publicly. Colorado-based Safe Harbor Services LLC, for example, is an arm of a Denver credit union that was one of the earliest deposit takers to embrace cannabis op- erators as customers, says Katrina Skin- ner, Safe Harbor's interim president. "There are not enough financial in- stitutions doing this because it is very cumbersome,'' Skinner said. Safe Harbor estimates it banked some $1.8 billion in cannabis funds in 2018. In neighbor- ing Massachu- setts, the $506 million-asset GFA Federal Credit Union since No- vember has been pursuing marijuana cultivators and retail/medical dispensaries as banking customers. Tina Sbrega, president and CEO of GFA, which has seven branches in Massachusetts and two in New Hampshire, de- clined to identify the credit coop- erative's handful of cannabis cli- ents to date. She did say her credit union modeled its cannabis-banking operation using Safe Harbor's "best practices." In December, the Credit Union League of Connecticut and a New Haven finan- cial-technology startup, Green Check Verified, announced a partnership aimed at making state credit unions' deposit, checking, money- transfer and other services available to the cannabis industry. Green Check's product — a web- based applica- tion that offers real-time access to banking, compli- ance monitoring and reporting, and transaction verification, among other services — is currently being rolled out as a pilot in several states. "Credit unions are looking for the right tools to provide much-needed services to this industry," said Chris- topher Whalen, the Credit Union League's vice president for marketing. Credit Union League CEO Jill Nowacki said her members are "watch- ing the (marijuana) business grow and watching it become more prevalent in communities.'' Yet, they also want to stay compliant with federal rules such as those requiring federally regulated or insured financial institutions to submit "suspicious activity reports,'' such as when large sums are deposited, or other irregular activity. So, the League, like its credit co-op peers in Massachusetts and other cannabis-friendly states, are looking for partners to help them navigate compliance waters. Green Check Verified relies on a patented technology to assist banking clients in creating a digital compliance platform that monitors their sales and cash-taking operations so as not to run afoul of federal banking and other disclosure rules in dealing with their cannabis clients, said Green Check CEO Kevin Hart. Hart's team of 13 software engineers and banking experts in New Haven spent three years developing their product — three patents on the tech- nology are currently pending. "This is not just meant for Connecti- cut. It's a national platform,'' Hart said. " … We're not hobbyists. We're in this because we see the [cannabis] market maturing." Jill Nowacki, President and CEO, Credit Union League of Connecticut Tina Sbrega, President and CEO, GFA Federal Credit Union Kevin Hart, CEO, Green Check Verified Connecticut medical marijuana dispensaries and producers don't like discussing how they handle their financial services, especially in light of lenders' reluctance to serve the industry. Quality Construction + Butler Manufacturing = Repeat Customers www.borghesibuilding.com © 2011 BlueScope Buildings North America, Inc. All rights reserved. Butler Manufacturing™ is a division of BlueScope Buildings North America, Inc. 2155 East Main Street • Torrington, Connecticut 06790 The Belknap White Group, Hartford, CT | 2012 | 15,300 sq. ft. Northeast Beverage, Orange, CT 2006 | 97,000 sq. ft. Contact us at 1-855-BUILD-86 or visit us on the web. Looking to create a custom publication? Let us take care of it for you. ADVERTISING@HARTFORDBUSINESS.COM WWW.HARTFORDBUSINESS.COM/CUSTOMPUBLISHING | 860.236.9998 Whether it's the celebration of a major anniversary or the opening of a new headquarters, Hartford Business Journal's Custom Publishing Division can help you create a custom magazine for your business. Our division's top fl ight team of writers and designers can help you tell your story – and make your business look great! Based on our unique publishing model, it's surprisingly affordable. CALL TODAY!