i) The Issues
ii) Main Features Of The Service
In 2014, Cannabis 1.0 was installed in Colorado for tracking seed to sale. There were few financial institutions participating so compliance was completely dependent on tracking and honor system from the initial seed/clone to the sale.
Today, all states follow this same program with a variety of vendors. The challenges with Cannabis 1.0 are
• Tax leak
• Inability to compare the product sold to actual money received
• Cole memorandum and compliance with FinCEN guidelines impossible to track orconsistency in financial statement, one of the red SARs reporting systems
THE ALLIANCE FINANCIAL NETWORK
SUITE OF SOLUTIONS
In August 2017, Alliance Financial Network, a FinCEN registered financial institution, announced the development of their unique network for highly regulated industries, including the cannabisindustry.
Cannabis 2.0 introduced Cannabis Business Operating System.
The Cannabis Business Operating System is a complete end – to – end business software solution for the cannabis industry.
Designed as a unique seed to banking system, the operating system ensures compliancy,accounting and electronic bill pay, insurance, legacy cash banking, commercial insurance and of course, merchant services.
Alliance Financial Network is a national private financial institution registered with FinCEN, the Financial Crimes Network of the U.S. Department of the Treasury.
Alliance Financial Network is committed to working with bank challenged consumers and businesses through its electronic eXchange POrtal, eXPO™.
We have committed eXPO™ to work with legal cannabis, on a national basis in compliance with guidance set out by state(s) and federal government.
As a mobile and internet based Application, Alliance Financial Network is both a consumer and business membership facing portal for member partners. For the cannabis industry, AFN’s wholly owned software:
Manages cannabis business at every level from business inception to CPA throughout the entire economy of the industry; patient/consumer to retail, business to business, business to government and outside of the membership, to electronically pay bills to non-members.
Alliance Financial Network is mandated to file SARs reports to record suspicious activities just like all registered financial institutions
Electronically manage eXPO™ credit Consumer member to consumer member. Consumer member to business member.Business member to business member. And all members to electronically pay bills within and outside the membership network.
Track and trace sub inventory and inventory from seed to batch and batch to sale and onto the general ledger.
A complete 360-degree compliance system.
Track and trace plants and inventory that are written off.
Record and collect sales taxes for payment with summary and larger back up report.
Provide governments with a total operating system
To cross check between inventory, sales and revenue.
Allow investors, leasing companies, attorneys, CPAs and insurance companies among others to collect their fees without interruption.