Agricultural Law Lecturer, Dr. Marne Coit, at NC State Extension, NC State University writes…
7/16/2020 – The Financial Crimes Enforcement Network (FinCEN) recently issued guidance for banks and other financial institutions that work with hemp businesses. This is a supplement to an interagency statement about banking that was issued in December 2019. The guidance clarifies what information financial institutions can ask hemp businesses to provide as part of compliance with the Bank Secrecy Act (BSA).
The purpose of the guidance is to make it easier for hemp businesses to secure financial services. Hemp businesses includes growers and processors. Information that banks may request from hemp businesses may include: A valid hemp license or an attestation by the grower that they have a valid license Proof of license renewal The results of compliance testing Hemp businesses must be in compliance with all state and federal laws. If the bank becomes aware of suspicious activity, it may file a Suspicious Activity Report (SAR). Suspicious activity may include:
A hemp grower growing hemp illegally, such as in a state where it is not permitted A hemp business that is involved in money laundering or other criminal activity A hemp grower who does not have a currently valid license Read the full document on FinCEN’s website.