Regardless of the 2018 US Farm Bill clearly permitting economic transactions in the hemp business, several banks and other economic institutions have been slow to participate, blaming their worry of the threat of federal regulatory crackdowns. Today’s guidance removes substantially of that concern, such as clarifying that banks do not have to file suspicious activity reports for prospects solely for the reason that they are engaged in the development or cultivation of hemp. The new guidance also outlines how the needs for hemp enterprises below the Bank Secrecy Act are various from marijuana enterprises.
To be clear, today’s guidance does NOT call for banks or economic solutions organizations to engage with hemp enterprises, nor is there any certain mention of hemp-derived CBD or enterprises that engage in that commerce. Complete passage of the pending SAFE Banking Act is nonetheless vital to additional open up hemp and CBD commerce to economic institutions and credit card organizations.