Press

Amended Testimony by Dama Financial Examining Cannabis Banking of Small Businesses and Workers Committee on the United States Senate Banking, Housing, and Urban Affairs

Chairman Brown, Ranking Member Scott and the esteemed members of the Committee, Dama Financial was honored to testify before this committee to share our compliance experiences in cannabis banking. As the CEO of Dama Financial, we took an overly myopic focus drafting our testimony on banking compliance rather than balancing the testimony with why the benefits of the legislation outweigh the desire for future enhancements. This was my oversight. I wish to express our full support for the SAFE Banking Act, S. 1323.

Dama was founded in 2016 to provide banking access to licensed cannabis-related businesses with a compliance-first approach following the provisions outlined in the “Cole Memo” of February 14, 2014 as well the FinCEN Guidance, BSA/AML requirements and all applicable federal and state laws.

Today, 47 states, four U.S. territories, and the District of Columbia, all of which make up more than 97% of the U.S. population, have legalized some form of adult-use or medical cannabis, including CBD. However, current law prevents legitimate licensed cannabis businesses from fully accessing financial services and products, such as banking accounts, loans and alternative forms of payment other than cash. Unfortunately, this has resulted in many businesses operating primarily with cash, which is not only an inefficient business practice, it also is a threat to public safety for businesses and our communities. It is an unnecessary risk that welcomes theft, robberies, burglaries and unfortunately even deaths.

By preventing federal agencies from taking action against entities that provide financial services to licensed operators and cannabis-related businesses, the SAFE Banking Act would cohesively bring federal and state law together. The American people deserve a smart economic policy which illuminates liability for depository institutions offering financial services to legally licensed cannabis operators and cannabis-related businesses. While there is need to address other compliance and banking enhancements for the industry, Dama believes these enhancements should not hold up the passing of the SAFE Banking Act, S. 1323t now, as a first step to improving the industry’s access to financial services and products.

The cannabis industry continues to show growth in the U.S. market and is developing at a faster rate as more states are transitioning from medical-only to fully legal in a shorter time frame – now is not the time to stunt the financial infrastructure that would support this growth. By giving financial institutions the ability to work with cannabis businesses and supporting the SAFE Banking Act, the Senate would not only help safeguard Americans by reducing cash on the streets, but would also be supporting smart economic policies that greatly contribute to our country’s financial health.

By passing the SAFE Banking Act, federal lawmakers have an incredible opportunity to stand on the right side of history – all they need to do is act on this important bipartisan measure. Dama Financial fully supports passage of the Safe Banking Act S. 1323t.

Urgent Call for the Passage of the SAFE Banking Act

Today, we reach out to you with a matter of utmost importance that demands our clarification. At the recent Senate hearing on the SAFE Banking Act, we gave testimony requesting a “pause” on passing the bill to make further refinements regarding compliance. There is no such thing as perfect legislation, and we regret that our testimony did not highlight the bill’s merits and the urgent need for its passing. We accept full responsibility for the testimony and regret that we did not use this crucial opportunity to make our stance abundantly clear.

We value you and your business and hope you allow us this opportunity to apologize and clarify our position. Dama Financial is wholeheartedly in favor of the SAFE Banking Act in its current form, and we are actively calling for its passage as soon as possible. We firmly believe that cannabis-related businesses (CRBs) deserve complete access to all financial services, just like any other legal business operating in the United States. The cannabis industry is too large and too crucial to the US economy to be ignored and forced to operate primarily in cash. The SAFE Banking Act presents a pivotal opportunity to ensure the livelihood, safety and financial stability of the industry and its workers.

Over the past three years, Dama has collaborated with the Senate Banking Committee and members of Congress to provide valuable insights into the needs of CRBs with the goal of developing a bill that addresses industry demands, incorporates social equity initiatives, and garners bipartisan support to become law. Despite the financial services and compliance shortfalls identified, we firmly believe that the benefits the bill brings to the industry far outweigh the need for additional enhancements.

I have been participating in ongoing discussions with industry leaders in order to clarify our stance on this urgently needed legislation, and welcome discussion with you – our valued clients and peers. We value your partnership and appreciate your understanding. Rest assured that we remain dedicated to serving your business and supporting your growth and success as well as the supporting the success of the cannabis industry.

Thank you for your continued trust and support.

Sincerely,

Patrick O’Boyle
Dama Financial CEO

Dama Financial to Acquire GrowFlow

Dama Financial ("Dama"), the nation's largest provider of access to banking and payment solutions for the cannabis industry, has entered into an agreement to acquire GrowFlow Corp. ("GrowFlow"), whose business management and compliance tools have processed more than $3.3 billion for cannabis retailers, cultivators, processors, and distributors.

Dama Financial has entered an agreement to acquire GrowFlow, creating a comprehensive solution for cannabis companies.

Combining Dama's fintech and payment solutions and GrowFlow's industry-leading software platform will create the most sophisticated, comprehensive solution for cannabis companies, integrating product, operations, compliance, and financial data in a more usable and flexible solution than any current offering in the industry. The highly scalable platform will fulfill the business needs and regulatory obligations of any licensed cannabis business — dispensary or wholesale — everywhere cannabis is legal in the United States.

Anh Hatzopoulos, Co-founder and CEO of Dama Financial: Cannabis Banking

FWM: You have a 25+ year career of successful startups and scaling businesses such as Netspend, Walmart.com, and Netscape. What led you to launch Dama?

After spending years in the payments industry creating solutions for consumers that are underserved, it was a natural fit to help with a massive public safety issue by creating solutions for the cannabis industry. When hardworking business owners don’t have access to banking and are forced to operate entirely in cash, it puts not only their employees and customers at risk of falling victim to crime, but their surrounding communities as well.

FWM: Tell us about the challenge of building credit in the cannabis industry.

In order to build credit—for any business—you have to be able to get a lender (bank or otherwise) to extend credit. Lenders are reluctant to extend credit to businesses that operate in cash. In other words, operators get no cashflow credit while operating in cash. Businesses that are interested in building a credit history should start by getting funds into a bank account.

B2B PAYMENTS In The Push Against Cash, Cannabis FinTech Meets The Industry Where It Is

Despite expanding legalization of cannabis, businesses operating legally in the space face no shortage of headaches when it comes to getting banked, accessing loans and having access to the critical financial services any company needs to operate.

For players in this high-cash market, it is a well-known fact that — in addition to the traditional pains of operating a small business — compliance and a lack of access to the banking sector create compounded difficulties.

Dama Financial Introduces Comprehensive Payroll Solution

Dama Financial ("Dama"), the nation's largest provider of access to banking and payment solutions for the cannabis industry, has expanded its product offering with the release of Dama Payroll, a comprehensive payroll solution that integrates seamlessly with Dama's platform.

How Dama Financial Is Offering the Cannabis Industry Comprehensive Financial Services

Exclusive Interview with Dama Financial Co-Founder and CEO Anh Hatzopoulos

Dama Financial was formed four and a half years ago by a group of payments professionals. Today, the company partners with FDIC-insured banks and offers the cannabis industry comprehensive banking and financial services. Co-Founder and CEO Anh Hatzopoulos spoke with New Cannabis Ventures about serving the cannabis space and growing the Dama Financial platform. The audio of the entire conversation is available at the end of this written summary.

Dama Financial Introduces Smart Safe Solution

Dama Financial (“Dama”), the nation’s largest provider of access to banking and financial services for the cannabis industry, has added Dama Smart Safe to its business toolkit.

Smart safes allow business owners to authenticate and monitor their cash at every step of the handling process. With rapid advancements in counterfeit technology, the detection of fake currency with the naked eye has become nearly impossible. Smart safes are equipped with bill validators that significantly decrease the risk of fraud. At the same time, the cash is reconciled automatically, eliminating the need to spend hours doing it manually.

Dama Financial Now Open to Cannabis Companies Nationwide

Dama Financial ("Dama"), the largest provider of access to financial services for the cannabis industry, is making its business solutions available to any legally operating company operating in a state that has legalized cannabis for adult and/or medical use.

Dama Financial is making its business solutions available to any legally operating cannabis company nationwide.