Banks Receive Green Light to Work With Hemp

WASHINGTON, DC – The federal banking agencies and the Financial Crimes Enforcement Network, in consultation with the Conference of State Bank Supervisors, have issued guidance on the Bank Secrecy Act related to hemp producers. The guidance makes clear that banks are not required to file Suspicious Activity Reports (SAR) on hemp producers operating under an approved federal, state or tribal license or plan. The guidance also notes that bank customers are responsible for complying with regulatory requirements, not the banks. Because hemp is no longer a Schedule I controlled substance under the Controlled Substances Act, banks are not required to file a SAR on customers solely because they are engaged in the growth or cultivation of hemp in accordance with applicable laws and regulations. The guidance came following an interim final rule in October from USDA providing a framework for regulatory plans from states and Indian tribes that wish to oversee hemp production, as well as a federal plan to license producers in areas without approved local plans.