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Tuesday, December 10, 2019

Feds issue new guidance on banking with hemp industry

Posted By on Tue, Dec 10, 2019 at 2:30 PM

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Federal financial regulators issued new guidance Dec. 3 to banks and credit unions regarding working with the hemp industry.

“Because hemp is no longer a Schedule I controlled substance under the Controlled Substances Act, 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 laws and regulations,” the memo states.

Colorado Sen. Michael Bennet, a Democrat, lauded the move. In June, Bennet wrote a letter to regulators explaining how “farmers and processors generally continue to lack access to the banking system even though hemp is no longer a Schedule 1 drug.”

Rep. Ed Perlmutter, D-Colorado, tweeted that the new guidance was “a good step forward and will help Colorado’s hemp industry and hemp businesses across the country.”

The next step for the hemp and marijuana industry will be passing the SAFE Banking Act, Perlmutter added.

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