Bank Regulators Ease Scrutiny On Hemp Companies

By Sam Reisman (December 3, 2019, 12:23 PM EST) -- Federal banking regulators gave much-needed relief to the burgeoning hemp industry on Tuesday with the release of new guidance clarifying that banks no longer need to submit suspicious activity reports for hemp producers since the crop is legal under federal law.

The new guidance is intended to remove for the banking industry any lingering stain of illegality connected to nonpsychoactive hemp. Although the 2018 Farm Bill removed the crop from the Schedule I list under the Controlled Substances Act, businesses involved in its cultivation have continued to face challenges securing loans and access to banking.

To be compliant with the Bank...

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