DURANGO, Colo. – National Cannabis Risk Prevention Services (NCRPS) has agreement with MG Payment LLC to acquire the wholesale/re-sale rights its e-wallet, mobile banking, and point of sale cannabis payment processing platform.
The acquisition will enable NCRPS to offer a custom-designed banking product to serve the needs of banks in states where cannabis is legalized. Cannabis sales remain illegal on the federal level, forcing industry businesses to resort to state-regulated banks for financial needs. The industry has also been limited by the absence of compliant payment processing solutions. NCRPS will address this through its acquisition of MG Payment’s products, enabling banking partners to offer the solutions.
“We are honored and excited to bring this total banking and finance risk management solution to the US cannabis industry as a big step in overcoming one of the market’s biggest risks,” said Rocco Petrilli, president, and CEO of NCRPS. “The addition of this capability completes the NCRPS full menu of risk solution processes that will work in unison to drive true cannabis market sustainability through precise risk scoring and follow-up education and execution.”
This first to market cannabis risk scoring system measures both the severity of risk and its subsequent improvement. It will enable banks and credit unions to accurately identify and reduce or eliminate risk while enjoying the revenue that a compliant e-wallet, mobile banking, and point of sale transactional system provide, Petrilli said.
“A robust, end-to-end, transparent, and scalable solution to identify and mitigate compliance and overall portfolio risk is exactly what is missing from the equation,” Petrilli said. “The NCRPS solution empowers interested depository financial institutions to make the choice to serve this essential industry.”
NCRPS uses its trademarked Cannabis Risk Prevention Platform, or CRP2™ to generate assessments on the financial wherewithal and risk exposures of cannabis business. Petrilli said this risk score will become the go to “credit score” for many cannabis banking, lending, financing, and insurance decisions.
NCRPS will retain Thomas Lorenz of MG Payments as its chief risk management officer-banking and finance. Lorenz is a CAMS Certified AML specialist, CAMS Certified Advanced Audit, CAMS Certified Advanced Financial Crimes Investigation, an ABA Certified AML BSA Compliance, a Member of the ACFE and a Certified Fraud Examiner. Lorenz has 30 years of banking, finance, and AML risk management expertise.
“The payment processing product is based on combination of Kineto™ and 2D™ technology which is protected by multiple international and domestic patents and patents applied for solution,” Lorenz said. Kineto and 2D are companies that provide the platforms that enable the payment processing functions. “These platforms currently operate on several continents leveraging technology to serve under and unbanked industries and individuals.”
“I am excited for the opportunity that the NCRPS/MGPayments transactions brings to the entire legal cannabis market,” Lorenz said. “The combination brings NCRPS one step closer to the first fully integrated banking risk identification and mitigation tool designed specifically for this important industry.”
Lorenz’s expertise will also support the National Cannabis Risk Management Academy, Petrilli said.
“Risk assessment and identification is an empty shell without the continued commitment to education and consultation provided by our high performing NCRPS professionals, NCRM Academy™ curriculum, and its expert service partners,” said Petrilli. “Full and effective risk mitigation comes from assessment, scoring, custom education, and execution. NCRPS remains committed to offering the best risk management solution to the cannabis market.”
(This information is primarily sourced from NCRPS. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).