SHF Holdings Introduces Banking Solution for Cannabis Businesses and Financial Institutions

DENVER – SHF Holdings, Inc. operating as Safe Harbor Financial, has launched a new Fully Managed Cannabis Banking Program, designed to streamline financial services for banks and credit unions serving the regulated Cannabis industry. Announced on September 2, the program offers a comprehensive outsourcing solution for operational and compliance needs, enabling financial institutions to engage with Cannabis-related businesses without expanding internal resources or assuming additional risks.

The initiative addresses a persistent challenge for community banks and credit unions:
Navigating the complex regulatory environment of Cannabis banking.

Safe Harbor manages all aspects of the program, including client acquisition, onboarding, compliance oversight, and account support, while partner institutions hold the deposits. This structure aims to reduce operational overhead, mitigate regulatory risks, and shield institutions from reputational concerns associated with direct Cannabis industry involvement. The program builds on Safe Harbor’s decade-long experience, having processed over $26 billion in Cannabis-related deposits across 41 U.S. states and territories since 2015.

Key features include fostering stable deposit growth by vetting and onboarding licensed Cannabis operators, full operational outsourcing to ensure compliance with Bank Secrecy Act and FinCEN guidelines, and a branding strategy that operates under Safe Harbor’s name to minimize direct Cannabis association for partner institutions. The program also offers a seamless exit strategy for banks winding down Cannabis operations, allowing them to transfer deposit management without disrupting client relationships.

Terry Mendez, CEO of Safe Harbor Financial, highlighted the program’s purpose:

“For more than a decade, we’ve helped financial institutions navigate the complexities of Cannabis banking. This launch responds to growing demand for safe, scalable ways to serve this market while addressing regulatory challenges.”

Kimberly Seefried, Vice President and head of the program, added:

“Many banks want to serve the Cannabis market but face staffing or reputational hurdles. Our solution removes those barriers by providing a proven model and team.”

The announcement coincides with Safe Harbor’s participation in the PBC Conference 2025, held September 3-4 in Washington, D.C., where Mendez joined industry leaders to discuss Cannabis banking’s future. The program’s launch follows other recent developments, including a strategic partnership with FundCanna in April 2025 to expand capital access for Cannabis operators and a $550,000 small business line of credit program for Colorado Cannabis operators in June 2024.

Safe Harbor’s program could set a precedent for financial institutions hesitant to enter the Cannabis sector due to regulatory ambiguity. By outsourcing compliance and operations, the program may encourage broader participation, potentially increasing banking access for Cannabis businesses.

Safe Harbor’s track record, including $25 billion in processed Cannabis funds by January 2025, underscores its role as a leader in Cannabis financial services. The company’s focus on compliance and transparency aligns with industry needs, but its success will depend on its ability to adapt to shifting regulatory frameworks and maintain trust among financial partners.