Pre-Deposit Validation
Pre-Deposit Validation

Multiple customer data sources validate the source of funds to generate a legitimate audit trail prior to deposit.

Product Features

Deposit validation control is applied to all product types offered by the financial institution.

Implementing a deposit validation control is  critical  to maintaining  regulatory  approval while  operating  a cannabis  banking program.

Information collected during deposit validation drives risk-based decision-making across the institution.

Without Technology

On a monthly basis, an analyst downloads the customer’s transaction history from the core. The analyst requests track and trace transfer records, accounting reports, or  POS  readouts from the customer. The analyst uses a procedure  to compare  actual  deposits conducted  at  the institution against the track and trace records,  accounting  reports, and  POS  readouts during  the month. Analyst compares past deposit activity to current deposit activity to determine if aggregate activity matches sales records and expected activity. Some cannabis banking consultants supply coded Microsoft Excel spreadsheets to assist BSA personnel with reconciling large transactional volumes by hand.

With Technology

Customer's track and trace system, accounting software, and POS is connected to the technology platform via application programming interface (API).Customer submits a deposit request through an online banking portal. Deposits are attached to package-level supply chain transactions or retail sales and checked against the customer's accounting entries. Funds enter the institution with a clear, downloadable audit trail that evidences the legitimacy of the deposit's source of funds. Risk factors extracted from the deposit validation control facilitate suspicious activity monitoring, accurate regulatory reporting (CTR/SAR),and customer risk profile assessment. No manual procedure or on-staff specialist is necessary to validate funds.

Recent Updates

As leaders in the cannabis compliance marketplace, Simplifya, NatureTrak, and HDCS have formed an alliance.

By acquiring Copacetic Strategies, NatureTrak has expanded its offerings and expertise which includes risk mitigation and more.

This webinar, co-hosted by HDCS, NatureTrak, and Simplifya, will explain how to bank cannabis safely and profitably. Together, we’ll share insights into the policies.

Understand the complexities and risks of this sector as cannabis product moves through the supply chain to its final destination.

Jontae James is the founder and CEO of Sacramento-based NatureTrak, which works with financial institutions to create an auditable supply chain record for their legal cannabis business customers.

Jontae shares his thoughts about social-equity programs that level the playing field for disadvantaged communities, offers advice for tech entrepreneurs hoping to make it in cannabis!