Secure Cash Handling for Cannabis Dispensaries

Secure Cash Handling for Cannabis Dispensaries

Cannabis has yet to be legalized federally and is still classified by the DEA as a ‘Schedule 1’ drug. Due to this classification, federally regulated banks often refuse to house the earnings of cannabis dispensaries for fear of losing their license to legally operate. This presents a challenge for dispensaries in states where cannabis has been legalized. Many dispensaries do not have a bank account, and even if they do, operate primarily in cash. This means that there are frequently large amounts of cash stored on the premises, and if cash is not handled safely and securely, this increases the risk of theft.

Quick Tips for Cash Handling

When dealing primarily in cash, dispensaries run the risk of internal theft from employees and external theft, such as a robberies. It is important to establish and follow procedures to ensure that cash is handled properly and accounted for at all times, as well as secured compliantly to reduce the risk of losses. Use these strategies to securely handle cash:

Create and implement standard operating procedures. 

While it is important to establish SOPs, it is far more important to ensure they are being followed. This will keep team members accountable and discourage internal theft. 

Conduct cash reconciliations frequently.

Counting out the cash drawer and balancing the till at the end of each day is imperative to finding any discrepancies and keeping track of earnings during day-to-day operations. 

Invest in security at the dispensary.

The best security is proactive security. Consider investing in quality security equipment and hiring a security expert in the cannabis industry to guarantee the facility is protected and successful. 

Quick Tips for Cash Storage

Most cannabis businesses require compliant safes or vaults to store cannabis and cash separately. This typically means that the business either has more than one safe or utilizes a safe and a vault. While proper storage of cannabis is often prioritized, cash handling can sometimes be overlooked Check out the following tips for securely storing earnings:

Store cash in a secure facility. 

Work with a security expert to design a facility to protect all assets. A security expert can better determine which method of secure storage is right for the business.

Minimize the amount of cash stored on-site.

Contract with a third-party cash transport company that utilizes guards and armored vehicles to deposit cash into the financial institution on a frequent, but irregular schedule.

Look into local banks and credit unions. Although federally regulated banks will not store cannabis related earnings, The US Department of Treasury has previously stated that there are over 700 financial institutions willing to engage in business with cannabis businesses. Call local banks and other dispensaries for any leads. 

Remaining Compliant

While almost every legal market has security regulations put in place to reduce the risk of theft and losses, some states such as Illinois and California have enacted regulations specific to the handling of cash. One common example is requiring that all transactions are recorded by a video surveillance system that is capable of identifying the cashier and the customer. Some of these video surveillance systems are even designed to connect to point-of-sales data to connect the recorded footage to the transaction automatically. 

It is also common for states or localities to require a secure form of storage for cash. Currency stored on the premises is often required to be stored overnight in a cash safe, such as a TL-rated safe, or in a vault. Cannabis businesses that sell on-site may also be required to utilize a drop safe or similar to reduce the amount of cash in the cash register during operating hours. 

Improper cash handling can put the business at risk of theft or diversion. While federally run banks will not often work with dispensaries, it seems there is hope with the reintroduction of the SAFE Banking Act. If passed, this bill would prevent banks from denying services to cannabis businesses. While it can be challenging, ensuring proper cash handling procedures not only allows the dispensary to remain compliant, but also can also aid in guaranteeing the protection and profitability of the business.

How Can Sapphire Risk Help?

Tony Gallo and the team of experts and consultants at Sapphire Risk Advisory Group have designed the secure storage for hundreds of cannabis businesses in the United States. Follow us on social media to stay up to date with more security best practices and cannabis industry updates!