Green Check, a banking compliance software company, verifies $1 billion in legal marijuana sales every month. The CEO, Kevin Hart, realized the problem that state-legal cannabis companies faced when they couldn’t access mainstream financial systems due to federal laws against marijuana. This led to the development of software that ensures cannabis businesses comply with state laws and regulations, allowing banks to work with them. Green Check processes about 40% of the U.S. legal marijuana market, helping over 11,000 companies maintain bank accounts.
The company has sold its software to over 150 financial institutions, including Valley National Bank, and raised $19 million in funding. With revenues of $8.3 million last year and an expected $12 million this year, Green Check is making a significant impact on the industry. Major cannabis companies like Green Thumb Industries and Curaleaf use their platform to comply with banking laws. Brinks Security has also partnered with Green Check to provide ATMs for cannabis dispensaries.
Green Check’s compliance engine ensures that banks only work with cannabis companies on their platform, verifying every product sold and every dollar that comes in. Affinity Federal Credit Union, for example, must send all cash from cannabis clients to the Federal Reserve in Boston or Philadelphia. Despite the challenges, the company continues to onboard new cannabis businesses rapidly, showing steady growth in the industry.
As progress on the federal SAFE Banking Act remains slow, Green Check continues to fill the gap. Hart believes that if the legislation passes or marijuana is rescheduled, there will be more rules and regulations to comply with. This would mean increased tracking of products and revenue, with the government imposing excise taxes on the industry. Green Check remains prepared for any changes in the regulatory environment, positioning itself as a crucial player in the expanding cannabis market.
