Aery Group, a subsidiary of US Eagle, provides financial services to cannabis-related businesses in New Mexico. Aery is built on a compliance foundation, ensuring that all processes will meet state and federal guidelines. On December 14, 2021, Aery Group was recognized by New Mexico Attorney General Hector Balderas as he announced that US Eagle Federal Credit Union is the first financial institution in the country to become certified for outstanding U.S. monetary banking protocols in banking cannabis and hemp operations.
This honor is part of a financial services certification program overseen by the Policy Center for Public Health & Safety (PH&S) in collaboration with state attorneys general. It is also part of a broader certification effort being implemented by ASTM international and PH&S.
"The marijuana industry will soon be exploding in New Mexico, and it is important to have banking safeguards to mitigate illicit and criminal conduct. This is an important first step in partnering with legally compliant businesses in the marketplace," said New Mexico Attorney General Hector Balderas.
The certification brings banking and financial transparency to ensure the safety of the monetary system for institutions banking hemp and cannabis.
"Credit unions were chartered to serve the unbanked and underserved population. The cannabis industry has been unbanked and underserved for years, often resulting in adverse impacts on public safety in communities where cannabis is legal," said Marsha Majors, President / CEO of US Eagle Federal Credit Union. “This certification program will help protect US Eagle, our members, the cannabis industry, and New Mexico communities.
"Fundamental to marketplace validation, is knowing which financial institutions are following procedures and protocols that are compliant with state and federal law. And, for the Industry to bank and receive financial services and take institutional investment, financial institutions and their insurers are looking for guidance," said Karen White, Executive Director, Attorneys General Alliance.
The overall certification model is accepted by state and federal agencies as the standard of compliance and in implementing general risk mitigating strategies. The curriculum focuses upon the following:
- The highest level of compliance standards that will meet the expectations of BSA and the FinCEN Guidelines.
- Mainstream depository options for cannabis related entities, including both plant touching and ancillary service providers, ensuring accountability, transparency, and reporting of the industry.
- Monitoring of internal activities of all personnel involved in the compliance program to ensure full compliance with processes that will protect US Eagle.
- Monitoring cannabis clients to ensure they are internally prepared to prevent or implicate any enforcement priorities previously recorded in the Cole Memo and still referenced in the Financial Crimes Enforcement Network (FinCEN) Guidelines.
- Creating a transparent environment of all activities with examiners, auditors, and other third parties that work with the financial institutions to build comfort and understanding; ultimately improving processes in the long term.
- Joining a network of cannabis banking financial institutions that share and develop best practices surrounding cannabis banking and using this shared network to assist each other with safety and soundness.
- Digitizing financial transactions to the highest level possible to increase transparency.
- Ensuring records are thorough, easily navigated, and readily available to fulfill law enforcement demands such as subpoenas, inquiries, etc.
This newly-introduced financial banking protocol is an integral part of changing New Mexico's cannabis industry for the better. The state's workforce, economy, and the future of the cannabis industry rest on implementing these new protocols. Other states will take a cue from New Mexico and develop unique protocols.
