On June 29, 2020, the Financial Crimes Enforcement Network (FinCEN) issued guidance to address questions related to Bank Secrecy Act/Anti-Money Laundering (BSA/AML) regulatory requirements for hemp-related business customers. The guidance explains how financial institutions can conduct due diligence for hemp-related businesses, and identifies the type of information and documentation financial institutions can collect from hemp-related businesses to comply with BSA regulatory requirements.
This clarification is intended to enhance the availability of financial services for, and the financial transparency of, hemp-related businesses in compliance with federal law. The guidance supplements the December 3, 2019, Interagency Statement on Providing Banking Services Customers Engaged in Hemp Production.
The guidance provides BSA/ AML risk considerations only for hemp-related businesses (i.e., businesses or individuals that grow hemp, and processors and manufacturers who purchase hemp directly from such growers). The guidance does not replace or supersede FinCEN’s previous guidance on the BSA expectations regarding marijuana-related businesses (FIN- 2014-G001, Feb. 14, 2014).
The guidance is available at: https://www.fincen.gov/sites/ default/files/2020-06/FinCEN_ Hemp_Guidance_508_FINAL.pdf.
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