ARVADA, Colo.–Sundie Seefried, who has by trial-and error and ultimately success become one of the most knowledgable experts in credit unions in serving the cannabis industry, is sharing her knowledge in a new book called “Navigating Safe Harbor: Cannabis Banking in a Time of Uncertainty.”
Seefried is president and CEO of Partner Colorado CU and its division, Safe Harbor Private Banking, which offers banking services to marijuana businesses. As CUToday.info reported here, book covers the banking challenges cannabis businesses faced after Colorado voters approved the sale and use of medicinal and recreational cannabis.
Below, Seefried shares her thoughts with CUToday.info readers on why she wrote the book and more. The book is available at safeharborprivatebanking.com and also available at Amazon.com in both ebook and print versions.
CUToday.info: Why choose to write a book on this subject, and what led to the decision this would be a good approach?
Seefried: The subject of MRB Banking is so new to the financial industry and no resources seemed to exist to assist institutions with starting the right conversation regarding approaching this unique risk. Other financial institutions, legislators and regulators were relying on the very few of us in the space to answer questions and provide education; a very complex and time consuming task. This was difficult to manage into my work schedule, so the book was developed to assist other financial institutions with sufficient conversation to determine their true level of interest prior to having any conversations with me. It allows for a much more productive call after the book has been read.
Furthermore, the need for our clients to have access to banking in other states is pressing and the book is meant to encourage further entrants to meet this need; otherwise, I have half banked clients and that makes BSA and AML adherence difficult for our BSA Officers.
CUToday.info: What did you learn about the book-writing process? Have you previously written any books?
Seefried: I learned a great deal on how to organize a book from start to finish and then proceed to actually write the script. I have never written a book nor did I have it as a career aspiration. I simply used this venue as a tool to allow more time in my day to focus on the credit union.
CUToday.info: Many credit unions, even in states where cannabis has been legalized, believe it’s either illegal or simply not worth extending financial services to cannabis-related businesses. How do you respond when you hear that?
Seefried: It’s true that a business case must exist to cover costs and risks and that is difficult in some states where only medicinal cannabis has been legalized. However, the true credit union philosophy of banking the unbanked along with the community safety issue should have credit unions taking an interest other than just the business case, in my opinion. I think they should, at minimum, research it sufficiently to ensure their community does not have a safety issue.
The other consideration is if the possibility of recreational use will be legalized and having those relationships now in preparation is golden.
CUToday.info: Can you describe the Safe Harbor Private Banking program and why you created it?
Seefried: The program is a full scope program with four distinct phases to ensure full compliance with BSA and AML regulations. The focus remains on intimate knowledge of the owners, the business and the money. It is completely designed as a compliance program with service aspects in order to protect our BSA Officers and the credit union. All employees engaged in the program are certified BSA Officers.
CUToday.info: As the cannabis industry reaches semi-maturity, at least in Colorado, how has it changed and what do you think could lie ahead?
Seefried: The industry is maturing at a very rapid pace; attracting Fortune 50 executives and the like at the helm. Colorado continues to expand on the national level even faster, which complicates the business without access to banking in the other states. They are proven businesses with solid management and compliance experience. The states now licensing such businesses are vetting the best of the best for licenses issued and the business is well worth exploring. It is important to note that some states issue limited licenses, and it behooves the financial institution to be first to enter in order to secure those relationships for a solid business case.