Treasury Department Issues New Guidance On Hemp Banking

Highlights

• The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, has issued new guidelines for providing banking services to the hemp industry.
• Under the new guidance, FinCEN notes that for customers who are hemp growers, financial institutions may confirm the hemp grower's compliance with state, tribal government or U.S. Department of Agriculture (USDA) licensing requirements, as applicable, by obtaining either a written attestation by the hemp grower that they are validly licensed or a copy of such license.
• Otherwise, financial institutions are free to design a customer identification program that aligns with the institution's risk tolerances and the institution's assessment of the level of risk posed by each customer.