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ARTICLE · 05 DECEMBER 2019

Federal Bank Regulators Issue Joint Guidance On Hemp

Holland & Knight
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•Several federal bank regulatory agencies, in consultation with the Conference of State Bank Supervisors, have issued joint guidance on Providing Financial Services to Customers Engaged in Hemp-Related Businesses.

United StatesCannabis & Hemp
Travis P. Nelson
Travis P. Nelson
Gabriel Caballero Jr.
Gabriel Caballero Jr.
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  • Several federal bank regulatory agencies, in consultation with the Conference of State Bank Supervisors, have issued joint guidance on Providing Financial Services to Customers Engaged in Hemp-Related Businesses.
  • The new interagency guidance, issued on Dec. 3, 2019, confirms that banks are free to provide banking services to the hemp industry just as they may for any other agricultural commodity. Specifically, the guidance affirms that banks are not required to file a Suspicious Activity Report (SAR) on customers solely because they are engaged in the growth or cultivation of hemp in accordance with applicable law and regulations.
  • When deciding whether to serve hemp-related businesses, the guidance notes that banks must comply with applicable regulatory requirements for customer identification, suspicious activity reporting, currency transaction reporting and risk-based customer due diligence, including the collection of beneficial ownership information for legal

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