NEW YORK (MainStreet) -- When Salal Credit Union in Seattle had its annual review with state and federal examiners last month, the exam was more involved and thorough than before the state-chartered institution began accepting deposits from marijuana businesses.
"It was a joint federal and state audit," said Carmella Houston, vice president of business services with Salal. "They wanted to understand the monitoring and ensure we were tracking the flow of funds, the background of the owners who opened these accounts and where the initial startup the funds came from to launch their companies."
Must Read: Anworth Mortgage, Your Greed Is Showing
Salal passed its annual exam with flying colors.
"We were expecting the additional scrutiny," said Houston. "Our CEO and chief lending officer had talked to the examiners to let them know we were getting into the marijuana industry and that we wanted their feedback."
Banking experts aren't surprised that Salal experienced more scrutiny from regulators since offering cash management accounts to marijuana companies.