Introducing cannabis banking that’s safe, compliant and profitable
Cannabis is the green wave sweeping the U.S. Now legal in nearly 2/3 of the country, the industry is projected to grow to an economic impact of $77 billion by 2022 (Source: Marijuana Business Daily’s Marijuana Business Factbook, 2019). Banks in every legalizing state are scrambling for a regulatory-compliant, low-risk, high profit way to participate. Yet traditional approaches leave everything to be desired—leaving most banks sitting on the sidelines for the next great business opportunity.
Enter Abaca–purpose-built for cannabis banking
Enter Abaca–a fintech banking partner purpose-built to help your financial institution successfully bank marijuana-related businesses (MRBs). Through our partner banks, Abaca enables compliant and safe financial services. Partnering with Abaca will help your financial institution:
- Attract low-cost deposits
- Drive non-interest income
- Minimize reputational risk
- Confidently address regulatory/compliance hurdles
- Achieve competitive advantage in the space and outdistance the competition
Through specialization and technology, Abaca efficiently:
- Performs enhanced due diligence on MRB accounts and their owners
- Enables quick account opening and customer onboarding
- Manages continuous monitoring to detect suspicious activity
- Enables streamlined reporting and more to support your compliance team
Abaca also offers electronic payments options, including our proprietary payment application and PIN-based debit, enabling seamless commerce and reducing risk for MRBs.
Our unique approach
The Abaca compliance program has been constructed to meet and exceed FinCEN FIN-2014-G001 guidance. The program consists of a three-pronged approach to meeting FinCEN guidance beginning with enhanced due diligence prior to account opening.
Once active, each MRB account is monitored by the Abaca Compliance Engine, which ingests and analyzes seed-to-sale and bank account data to monitor each account against normal and expected activity levels as directed by the guidance.
Abaca also institutes proactive compliance controls through the Abaca Internet Banking Application, requiring pre-approval and due diligence on all vendors and other third parties prior to processing payment. Finally, Abaca produces SAR and CTR report data files for partner institutions, drastically reducing the workload required to satisfy reporting obligations.
Abaca helps banks monetize cannabis business through monthly account fees, cash deposits, B2B payments and electronic payments. Financial services extend well beyond checking accounts and payments process to lending services, treasury management services and other high-demand, high-margin financial products. Abaca is signing clients daily, and recently closed on seed financing that will enable the company to deploy its cannabis banking platform nationwide.
State of the art compliance management and reporting
Abaca Compliance Engine ingests seed-to-sale and bank account data in order to analyze transactions and activity for red flags and also reconcile MRB sales data to bank deposit activity. The Compliance Engine feeds alerts to the Compliance Management application for further investigation and action, as may be warranted.
Purpose-built by experts in law, banking and fintech
Abaca’s founders are experienced executives in the legal, banking and financial technology industries. They conceived and developed Abaca to address the specific and evolving needs of banking the cannabis industry. Get to know Dan, Brian, Greg and John!
Your opportunity to partner
The legal cannabis industry is grossly underserved today—roughly 1 in 20 banks is providing services. Yet the industry is already producing over $10 billion in legal sales annually, and growing. By partnering with Abaca, your bank can participate in this growing sector—managing reputational and regulatory risk while boosting fee income and deposits.
Abaca is actively pursuing key relationships with banking partners—but no more than a handful in each legal cannabis jurisdiction.
Are you making loans into the cannabis space? Abaca provides cannabis loan servicing to financial institutions and private lenders, with a turn-key solution. Abaca’s loan servicing department sends monthly payment statements and collects monthly payments, maintains records, collects and pays taxes and insurance, manages escrow and impound funds, remits funds to the note holder, and follows up on delinquencies. You just sit back and watch your returns come in.