Shield Compliance provides a specialized platform for financial institutions to manage compliance with cannabis banking regulations through automated reporting, activity alerts, and data analysis. The solution addresses the complexities of risk management and regulatory adherence in the rapidly growing legal cannabis market, enabling banks to serve cannabis-related businesses effectively.
Funding
$5M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Financial institutions face significant hurdles in navigating the complex regulatory landscape and managing the risks associated with providing services to cannabis-related businesses (CRBs). The lack of clear federal guidelines creates uncertainty and necessitates robust compliance programs to adhere to BSA/AML requirements. This complexity hinders banks and credit unions from effectively serving the rapidly growing legal cannabis market.
Solution
Shield Compliance offers a purpose-built compliance platform that enables financial institutions to manage risk, comply with regulations, and streamline operations related to serving the legal cannabis market. The platform automates key compliance processes, including client onboarding, transaction monitoring, and regulatory reporting, by aggregating data from various sources such as state and local governments, seed-to-sale tracking systems, and client accounting information. Shield Compliance facilitates informed decision-making and efficient compliance management, allowing financial institutions to confidently serve CRBs while adhering to BSA/AML guidelines. The platform's modular design includes solutions for client onboarding (Shield Engage), daily compliance management (Shield Assure), and data management and validation (Shield Data Hub). Shield Transact enables compliant payments by reducing cash dependency through solutions for accounts receivables, point of sale (POS), and mobile payments.
Target Audience
The primary target audience includes banks, credit unions, and other financial institutions that are either currently serving or considering serving the legal cannabis market.
Features
- Automated BSA/AML compliance management tailored for cannabis banking
- Real-time monitoring of transactions and customer activity
- Automated report filing to FinCEN and other regulatory bodies
- Integration with state and local government databases for enhanced due diligence
- Secure data management and validation to ensure accuracy and completeness
- Streamlined client onboarding process with automated risk assessment
- Integration with point-of-sale (POS) and mobile payment systems to reduce cash transactions
- Customizable alerts and reporting dashboards for proactive risk management