Rescheduling of Cannabis Could Reshape Banking, Affect FinCEN and IRS Regulations, according to the Cannabis Banking experts at StandardC

SAN FRANCISCO, Sept. 1, 2023 /PRNewswire/ -- The U.S. Health & Human Services Department (HHS) recommendation to reschedule cannabis from a Schedule I to a Schedule III drug¹ will transform the cannabis industry and create new opportunities for banking and financial services providers.

Robert Mann, Co-Founder & CEO of StandardC, noted that if approved, HHS's recommendation to reschedule cannabis from Schedule I to Schedule III would be a crucial step, and the first at the Federal level, to improve the financial viability of the licensed cannabis industry in these key areas:

Richard Laiderman, former head of global treasury for VISA and Co-Founder and chair of StandardC, has weighed in on this breaking news. "Rescheduling cannabis to Schedule III may allow dispensaries to accept credit card payments. Credit card payments may supplant cash transactions if this occurs, reducing the risks and costs associated with cash-only operations."

Cannabis banking experts, including Robert Baron, commented, "While changes will inevitably occur, financial institutions looking to serve this market segment must implement risk management tools to evaluate and monitor cannabis businesses. This is where StandardC's business underwriting & monitoring tools are perfectly suited to meet their Bank Secrecy Act and customer due diligence obligations." 

StandardC's advanced Cannabis Business Underwriting & Monitoring Center and Universal Business Services application will allow financial institutions to meet the challenges of this expanding industry in a scalable and profitable manner.

About StandardC

StandardC is transforming how financial institutions and financial services manage risk and compliance. Backed by a team with deep expertise in risk analytics, banking, and regulatory supervision, StandardC creates and maintains digital identities certified with the StandardC Credential™ to simplify risk assessment, automate customer onboarding, and monitor ongoing compliance for cannabis and other high-risk businesses.

¹https://www.bloomberg.com/news/articles/2023-08-30/hhs-calls-for-moving-marijuana-to-lower-risk-us-drug-category

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SOURCE StandardC