As marijuana becomes legal in more jurisdictions, financial institutions still face significant risks when dealing with marijuana-related businesses (MRBs)—especially in the U.S. Palturai assists American clients in navigating regulatory complexities to ensure compliance
Key Risks of Doing Business with MRBs
Financial institutions must carefully manage their involvement with MRBs to avoid inadvertently facilitating money laundering, which could result in severe fines and reputational damage. Additional risks include:
- Inaccurate SAR (Suspicious Activity Report) filings
- Complications with government-backed loan programs
- Higher borrower default rates
- Challenges in securing collateral and guarantors
A thorough understanding of a client’s business network is crucial in mitigating these legal and compliance risks.
How Palturai Supports Financial Institutions
Palturai provides an effective solution for identifying and monitoring business partners with direct or indirect connections to MRBs. The Palturai BusinessGraph enhances visibility into customer networks, enabling financial institutions to:
- Strengthen Know-Your-Customer (KYC) processes beyond standard Anti-Money Laundering (AML) requirements
- Improve credit portfolio monitoring
- Reduce risks associated with merchant processing
Additional Use Cases
Beyond the marijuana industry, Palturai BusinessGraph has numerous applications in the financial services sector. It enables institutions to:
- Identify and map Ultimate Beneficial Owners (UBOs) within seconds
- Cleanse and continuously monitor customer master data
Want to Learn More?
If you are interested in discovering how our solutions can optimize your fraud prevention strategies, contact us for more information and a personalized demonstration.