Cannabis security screenings and financial integrity checks

To receive a retail store licence under the Cannabis Control and Licensing Act, applicants undergo a fit and proper assessment.

This is a public safety measure to ensure licensees are eligible to hold a licence, while keeping out organized crime and unregulated cannabis off the legal market.

Security screening and financial integrity checks are rigorous and in-depth. The length of time it takes to complete the assessment depends on the circumstances of the applicant, their associates, and those connected with associates.

Cannabis Marketing licence applicants go through security screening but are excluded from financial integrity checks. 

On this page:

• What is a fit and proper assessment?
• Security screening
• Consent for screening with BC Services Card
• Criminal and police record screening
• Financial integrity check

What is a fit and proper assessment?

There are two components in the fit and proper assessment:

1. Security screening
2. Financial integrity checks, including
   • Their business
   • Sources of all investment money 

Security screenings and financial integrity checks may also assess an applicant’s associates. 

An associate means a person who:

• May have direct or indirect influence over the applicant 
• May affect the activities carried out under the proposed licence
• Has a connection to an associate of the applicant.

This can include:

• Investors
• Family members

Rescreening

If an applicant and their associates were found fit and proper to hold a licence within the last three years, the LCRB may apply this determination to the applicant's future applications, as long as no changes have occurred. The general manager of the LCRB has discretion to rescreen an applicant at any time.

Security screening

Security screening is conducted by the Security Programs Division (SPD). The SPD security manager provides their opinion to the LCRB about whether the applicant is fit and proper. The LCRB general manager or delegate makes the final determination based on this opinion and other relevant information.

In addition to the below individuals, security screening may be required for those not listed who are associates of the applicant or persons connected to an associate. The following people may require security screening:

Consent for screening with BC Services Card

As part of a retail store licence application, applicants and associates generally submit a consent form for screening, although consent is not necessarily required. Visit the forms for sole proprietors and associates of cannabis licence applicants page for more information.

B.C. residents can use their photo BC Services Card to authorize their screening. Visit www.gov.bc.ca/bcservicescardhelp for information about how to set up the card.

Criminal and police record screening

Every applicant’s circumstances are unique. For this reason, a criminal record is reviewed on a case-by-case basis with all available information considered. Criminal and police record screening manages risks to public safety and gives all applicants a fair assessment.

Operation of illicit cannabis stores

Applicants who are operating or have operated an illicit cannabis store must disclose this information to the LCRB in their application.

This information won’t automatically disqualify an applicant, but the operation of an illegal cannabis store may cause the LCRB to determine an applicant is not fit and proper.

When determining if an applicant is fit and proper, the LCRB considers:

• Any enforcement history or education sessions with the Community Safety Unit
• The history of the illegal cannabis store

Receiving cannabis related permits or licences from a local government or Indigenous Nation does not guarantee an applicant will receive a provincial retail store licence under the Cannabis Control and Licensing Act.

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Financial integrity check

A financial integrity check may be requested of applicants, associates, and persons connected with associates. 

Those undergoing financial integrity checks must submit a completed financial integrity form, which collects:

• Past addresses, employment history, corporate associations, and any disciplinary actions
• Financial accounts, taxes, and loans
• Connection to federal producers of cannabis
• Connection, association, or financial interest in another cannabis application

After the form is received, the following documents for the last three years may be requested: 

• A statement describing all assets and liabilities 
• Their income tax returns for each jurisdiction in which they filed
• Their Notice of Assessment (or its equivalent from each jurisdiction) 

 In addition, the following information may be requested:

• Credit bureau reports
• Details about dispute resolution
• Litigation
• Court and bankruptcy proceedings