The BSA/AML world seems to be constantly changing, and it can be difficult to keep up. Banking hemp and other marijuana-related businesses is an area that is continually evolving. There was guidance that came out regarding SARs related to hemp customers.
Kevin explains more in the video.
Transcript:
Still relevant because this area is changing and being tweaked over time because the whole industry is changing; there was some new guidance issued with respect to hemp producers. Now, as you all know, we have marijuana-related businesses, so legalized marijuana at the state level, and then we have hemp, which is the same plant. Still, it's a little bit different because they changed the law, and they said, "Look, if this plant was produced under a state or federally licensed program for hemp, and it had a THC level under a certain threshold, then it is no longer cannabis. So it's no longer a controlled substance. It is hemp." So they've basically taken this plant, and they've divided it into two categories. If you jump through the hoops, now you have hemp, and you don't have to file SARs if you have activity in your bank related to hemp, as long as you know that it's hemp.
So some guidance came out that really streamlined this, making it a whole lot easier for financial institutions to bank hemp-related companies. Now, remember that this doesn't mean you have to take your hands off the wheel. There still are some due diligence requirements for hemp-related businesses. We're going to cover that in more detail a little bit later today.
Published
2022/12/09
