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The St. Kitts and Nevis Medicinal Cannabis Authority is taking steps to establish a secure banking framework for the Federation’s emerging medicinal cannabis industry, recognising access to financial services as one of the sector’s biggest challenges.
Speaking at the Authority’s quarterly press conference on July 15, Chief Executive Officer Nadiv Mills said correspondent banking relationships with United States financial institutions have made the issue particularly complex.
“We noticed that this can be very problematic, especially because of our correspondent banking situation with U.S. banks,” Mills said.
To address the challenge, the Authority has engaged consultant Saboto Caesar, former Minister of Agriculture in St. Vincent and the Grenadines and an attorney who helped develop the banking framework for that country’s medicinal cannabis industry.
“We have sought the services of our consultant, Mr. Saboto Caesar. He was very instrumental in setting up a banking framework for St. Vincent’s medicinal cannabis industry,” Mills said.
According to Mills, Caesar will assist in designing a banking framework tailored to St. Kitts and Nevis and work with local financial institutions to build confidence in the sector.
Caesar is scheduled to arrive in the Federation on July 19 for a five-day visit, during which he will meet with banks and credit unions to discuss the safeguards and systems needed to facilitate banking services for licensed cannabis businesses.
A key component of those discussions will be the Authority’s national track-and-trace system, which is designed to monitor the movement of medicinal cannabis throughout the supply chain and provide greater transparency and accountability.
“He will also introduce our national track and trade system, which the banks and credit unions will be privy to. This will make sure everyone is comfortable with the business that we are doing,” Mills said.
The CEO said building confidence within the financial sector is critical to the long-term success of the medicinal cannabis industry, ensuring licensed operators can safely access banking services and conduct business without unnecessary obstacles.
“The goal is to ensure that all funds will be able to be banked safely without issue,” Mills said.
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