Federal Agencies Clarify Requirements for Banks Working With Hemp Businesses
The Federal Reserve Board, Federal Deposit Insurance Corporation, Financial Crimes Enforcement Network, Office of the Comptroller of the Currency, and the Conference of State Bank Supervisors issued a joint press release to clarify the requirements for banks that provide financial services to hemp businesses.
The statement recognizes that under the 2018 Farm Bill, in conjunction with the regulations recently published by the USDA, hemp is a legal crop. As such, banks are not required to file suspicious activity reports (SAR) if a customer is either growing hemp or working in other hemp-related businesses. Banks should follow the same procedures for hemp businesses as they do for other businesses.