Seven Prospective Maltese Cannabis Associations Have Already Reserved Chosen Names
No fewer than seven potential cannabis associations have already reserved their chosen names ahead of opening.
Speaking to Lovin Malta, Leonid McKay, Chairperson of the Authority for the Responsible Use of Cannabis (ARUC) gave details on the progress the newly launched cannabis associations system has made since February.
“ARUC is satisfied by the level of interest shown to date since seven prospective associations have already reserved their chosen names whilst several others have held informal preliminary meetings to discuss their proposed operations,” McKay told Lovin Malta.
Since the application process opened in February, anyone hoping to open their very own association could get into contact with ARUC to get the ball rolling. However, some potential investors spoke out about the challenges they faced, with some even saying the due diligence in the process was too high.
However, McKay argued that due diligence was necessary to safeguard the integrity of the new sector.
“Since its inception, ARUC has made it clear that an open channel of dialogue with all stakeholders will be maintained in order to ensure that this historic reform reaches its goals. In fact, we continuously receive feedback about the regulatory framework and are fully aware of the initial costs involved in setting up operations,” he said.
“As a result of this feedback, licence fees were set at a minimum of €1,000 for small associations,” he pointed out.
McKay made it clear he believed the application process would ensure that the proposed setup “is compliant with the legislation, that the individuals involved in the running of the associations are of good conduct, and that no illegal trafficking of cannabis will take place”.
“The vetting process will also allow the Authority to ensure that the prospective associations shall adhere to its values and principles. ie that their focus shall be on harm reduction, that they shall operate on a non-profit and non-commercialised model, and adhere to the democratic participation model whereby the members’ role plays a very important part.”
Watch Lovin Malta’s interview with Leonid McKay below
And when it came to addressing claims of too high a due diligence process, McKay was clear; the authority is very keen to counter money laundering and other types of financial crime through the new regulatory system.
“The Authority is committed to sustaining an integral regulatory framework, which includes a rigorous due diligence process to ensure that illegally earnt funds are not used to set up any of the associations,” he said.
“For instance, the Authority will not allow individuals to declare that they earned money from inheritance without backing such declaration with supporting documentation.”
When asked about the feedback ARUC has received since February, McKay adopted a hopeful stance.
“Prospective associations have positively appreciated the need for a robust framework which, amongst other benefits, ensures that their reputation is safeguarded. The robust framework will also ensure that prospective members will have their mind at rest that they are joining associations administered by reliable individuals.”
And when it came to specific services – such as the testing of the cannabis product – McKay revealed some operational details clubs would be working with.
“Testing of cannabis will be required on every 20th batch if the same operational practices are maintained; the Authority will carry out its own testing and monitoring to ensure the integrity of the testing process,” he said.
He ended by urging any potential stakeholders with feedback on the process to get in contact at [email protected]
“The Authority is confident that the associations will also be able to set reasonable prices which will help combat the illegal market and in so doing fulfil the principles of a harm and risk reduction approach,” he ended. “Through the regulatory framework we aim to achieve a safe and regulated market which will ensure the integrity and good reputation of this sector and of the community associated with it.”
What would you name your cannabis association if you had the chance?
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