TAMPA, Fla.— USF Credit Union said it is moving forward with a cannabis banking program.
The $1.2 billion USF Credit Union said its program, called Verde, debuted this summer following numerous surveys of current members and discussions with its board.
“Yet even though the program is in its infancy, USF Credit Union COO Richard Sellwood says it’s proven successful in a region ripe with cash-only cannabis companies looking to protect their assets,” Business Observer reported.
Sellwood told the publication that getting into cannabis banking services aligns with the credit union creed of serving underserved markets.
To ensure the program stays in compliance with state and federal laws, USF Credit Union said it has partnered with Bonita Springs, Fla.-based fintech Green Check Verified.
“There are risks,” Sellwood told Business Observer. “We have to do our due diligence and that will include everything up to site visits, taking a look at how the operations are run and ensuring they are entirely compliant, making sure they have good security practices, going through the state licensure process to make sure they’re fully legitimate, and of course partnering with Green Check.”
The Risks
Most credit unions have shied away from banking cannabis businesses because the substance remains illegal under federal law. USF Credit Union’s Verde works with cannabis-related businesses, including those distributing hemp and CBD.
“It’s never just about the account opening,” Green Check CEO Kevin Hart told the publication. “It’s all the ongoing monitoring, not only of the account, but all the financial transactions that occur within the account, making sure the sources of those funds are from legitimate sales. You can’t sell your homegrown legally out the front door if you brought it in illegally through the back door. So, it’s a complex process.”
Current Status of Legality
Currently, 39 states, three territories and Washington, D.C., permit the use of cannabis products for medical purposes. In addition, 24 states, two territories and Washington, D.C., have enacted measures to regulate cannabis for adult use.
Business Insider noted that in 2024, legal cannabis retail sales reached $30.1 billion — a 4.5% increase over 2023 sales.
As of September 2024, approximately 830 financial institutions nationwide, out of roughly 12,000 — 6.9% — were actively serving the cannabis industry, according to FinCEN.
‘Quite Literally the Underserved’
“Credit unions like to talk about serving the underserved,” Sellwood told Business Insider. “This is a group that is quite literally the underserved, with very limited access to financial services, and we want to create a partnership that will last a lifetime with a degree of loyalty and mutual benefit that can carry forward into the future. We want our clients to say, ‘Hey, USF Credit Union was there for me when no one else was.’”
