Cannabis Security - Keeping the Stash Safe

1. Cannabis Security - Keeping the Stash Safe

2. Introduction Cannabis has become big business over the last decade as it has transformed from being an illegal drug to an acceptable medical remedy and even in some Countries such as Uruguay and Canada to full legal status. In these countries and in several states in the USA cannabis has not just been de-criminalized but made legal. The result of this is that cannabis can now be openly grown, distributed, sold and of course taxed. This has meant huge tax windfalls for the governments and states that have made cannabis either legal for medical use or for recreational use. Indeed, some industry observers believe that the industry in continental North America for example may top $31.4 billion in annual sales by 2021. This is serious big money but it doesn’t come without equally seriously big issues.

3. The problem is that in Canada even though cannabis has been legal since 2017 the major banks are still reticent to do business with the cannabis industry. This is despite that in Canada for example which has over 100 licensed cannabis producers and some start-up companies are considered to be unicorns – business that are worth $1Billion dollars or more. These successful businesses still find it hard to enter the international banking system.In the USA things are even worse as although 29 states have legalized cannabis for medical use and 9 states have legalized cannabis for recreational use it is still under Federal law classed as being illegal. The problem is that the flourishing cannabis industry is finding banking and financial services are out-with their reach. This is because banks cannot take their money nor do business with them under federal law - although they must still pay state and federal taxes. Additionally, the large security companies cannot transport their product or their cash, again due to Federal law restrictions, which has left these cash-rich businesses hugely attractive to criminal. This in turn has created a flourishing cannabis security industry that aims to ensure companies are secure and compliant with their state or countries security requirements.

4. Table of Contents • State and National Security Regulations. • Retail Outlets. • Transportation. • Security on the Farm. • Greenhouse and Indoor Farms. • Why all these Security Regulations? • What can the Professional Cannabis Security Companies do to Help? • Top Tips for Choosing a Cannabis Security Company. • Conclusion.

5. State and National Security Regulations The introduction of legislation that changed cannabis growing, production, distribution and resale from being a criminal offense to a legitimate industry did not come without stringent state or national regulations. Indeed in the US regulators have from the outset had strict security regulations in place although they differ from state to state.

6. Retail Outlets Most of the security regulations are common sense practices that any cash based business with highly resalable goods with a high street value would voluntarily put in place. For example, cannabis retail outlets need to be protected by security cameras in much the same way as high street banks, jewelers or pawn shops. However in the US state laws determine the type of security camera’s deployed as well as the time that video must be retained some are 30 days but some states demand a retention time off one year. In this case the need for HD cameras covering every exit and entrance and the storage of the video streams is a significant burden as now the cash, cannabis and the VDRs need to be secured.

7. Transportation A serious issue that small startups have in the cannabis industry is in securely transporting their cash and product as both are magnates for criminals. Armed robbers will make short work of an unprotected personal vehicle but the problem is that many security companies cannot transport cannabis due to its Federal illegal status. This is not just in the US which is under direct Federal law but in many other countries companies that do work in the US are very wary of breaking Federal laws such as in banking and narcotics and hence their reluctance to participate in any activity that they deem to be dubious. Naturally being involved in the distributing of cannabis is high up on their lists of dubious activities. Again this reluctance for traditional security firms to support the burgeoning cannabis industry has sparked demand and interest from start-up security firms that are specializing in cannabis security and transportation.

8. Security on the Farm In the states that have legalized the growing and cultivation of cannabis there will be strict regulation on how to secure the farm. This will certain need high double-layer perimeter fencing, sometimes triple layer with razor wire between the layers. Obviously on large farms this will be expensive but expected however what catches most farmers out is the number and locations required for surveillance cameras. Several states require cameras are fitted that cover an area of 20 meters both inside and outside the perimeter fencing. Some may require that these cameras are monitored 24/7 but most just insist that the video is retained and stored securely for anything from 30 days to 1 year. Obviously storing that amount of HD video from so many cameras covering say an 80 meter area of cultivation is going to be a problem. However, it not just security surveillance that is required as there will also need to be guards that patrol and protect the farm and react to any alerts from the surveillance cameras. This is where farms that can sustain all year continual cultivation and production benefit as they will typically be well manned with workers throughout the year. Unfortunately those that have climates unsuitable for year round production will need to secure their farms even during the non-productive times and that will require private security.

9. Greenhouse and Indoor Farms Most security regulations that apply to greenhouse and other methods of indoor cannabis cultivation are again concerned primarily with camera surveillance and perimeter security. However most cannabis producers will be well aware of this and have security and access management systems already deployed. Nonetheless the regulations insist upon minimal levels of security that producers must comply with. For example cameras must be placed to capture all the indoor area and not have any blind spots due to machinery or other obstructions. Greenhouses must have clear views inside and outside again covering all the area with no obstructions. This means that the surrounding area must be kept clear of foliage or equipment and once again the video footage from all the cameras must be retained for a predetermined time. Once more these are basic security requirements that any sensible cannabis producer would already have in place to protect their crop and their business.

10. Why all these Security Regulations? The problem is that with most start-ups across many industries there is a mad rush to profit. What this generally entails is that what capital is available is spent on the cash generating activities such as production and retail. Security is never ignored expect by the foolhardy but often is misdirected towards building a defensive fortress. This might make perfect sense to the cannabis producers especially if they have graduated from the times of illegal cultivation but it can build a buttress between the company’s staff and the customer. What these businesses must remember is that too much or heavy handed security can be just as detrimental to profit as insufficient security. After all you don’t want to be reflecting or instilling a sense of fear, paranoia and nervousness to your customers as that would drive most sensible customers away.

11. Another issue with the way some startup cannabis producers protect their business and product is through stealth, which is perhaps another hangover from the days of illicit trading. However this is never a good idea as travelling with large amounts of cash or cannabis in discrete family saloon makes you highly vulnerable to armed robbery. That is one of the reason that regulators insist on surveillance systems as both approaches to security typically fall into the heavy or stealth categories but both modes will insufficient from a law enforcement and governance perspective. This is because although the premises, which may be stealthy or bristling with defence, and the cash and product deemed by the owner to be secure. The problem remains that should there be a concerted effort to break into the premises. It would not matter whether the attack succeeds or not, from the police perspective there will be no forensic surveillance evidence.

12. Therefore regulators insist on not just camera surveillance, but the type of cameras installed (HD, IP) and the number of cameras, the placement and range of coverage as well as the retention period for the data. Some states have insisted on external surveillance similar to banks that covers the roads and alleys in the proximity to the company’s premises. Indeed these types of surveillance systems might even need to be monitored. In which case it becomes clear that the new cannabis industry is likely to struggle in complying with their state regulations and perhaps call in the professionals to help them.

13. What can the Professional Cannabis Security Companies do to Help? As we have seen it is still the early days of the cannabis production and retail industry with most countries in the world still considering it to be illegal. However even in those countries that have fully legalized cannabis companies are finding traditional services such as banking and security out with their reach. Instead a new style of security-focused company has arisen to fill this void and provide the security expertise and consultation that many startups in the industry need. Many of the companies go much further than just providing security audits and profiling but offer security implementation services and even secure transportation for cash and products. Many will also provide on-premises security personnel or even bespoke security systems. There is in any emerging market a mixture of truly professional businesses as well as a fair share of cowboys and the cannabis security industry is no different. So what services should we look for in a reputable security firm?

14. Top Tips for Choosing a Cannabis Security Company A good starting point is to pick a security firm that is both knowledgeable about regulatory compliance in the cannabis industry for your particular state and country and is also enthusiastic about working in the industry. To enable you to first succeed at this it is best to make sure that the companies being vetted do know about local specific regulatory requirements and have a vested interest in the cannabis industry. Another good way to differentiate between companies is to evaluate the options that they provide you with. Consultation should not be just around security they must as a starting point first meet the local requirements for compliance. Similarly the solutions offered should be appropriate for your business and not a one-size-fit-all solution. When considering security system proposals make sure that they will be fit for purpose and the company is going to meet all regulatory requirements. For example some states like Colorado and Washington State require that surveillance systems be monitored 24/7 by qualified and licensed staff. Sometimes security companies will just sell the system and leave the support and monitoring to you. Finally make sure that the security company takes a holistic approach, some companies have evolved from physical security, which is their forte while others are primarily technologists with little interest in the physical side. Ideally you want a company that has specialists in both practices.

15. Conclusion The cannabis industry is relatively new and potentially highly lucrative as well as risky so is naturally finding itself under stringent state or national regulations. As in many highly regulated industries compliance is a must and beyond the skills of the business. As a result many startup security companies have emerged to relieve cannabis companies from the burden of security and compliance. However, it is critical that you select a professional security firm that is both knowledgeable of the local cannabis industry and enthusiastic. One such company in Canada is Northern Source Security that provides both technical excellence through security consultations, audits, planning and implementations and also provides skilled and qualified manpower as well as training for security personnel. It is this competence in both the fields of technology through surveillance and early detection systems combined with their experience in close protection, security patrols and armed transportation services that make this company’s all-round prospective standout.

16. The End Find out more at - https://nfsecurity.ca/cannabis/