Treat Hemp Like Any Other Industry, FinCEN Urges

Law360 (June 29, 2020, 4:23 PM EDT) -- The Financial Crimes Enforcement Network issued new guidance on Monday telling financial institutions to use standard risk-based processes when monitoring hemp-related businesses for Bank Secrecy Act compliance, an effort to free up financial support for a fully legal industry that nonetheless continues to give banks pause.

In assessing BSA and anti-money laundering, or AML, compliance for companies dealing in hemp — the only form of cannabis legalized at the federal level — firms should conduct due diligence "as they would for all customers" using a risk-based lens, the financial crimes unit of the U.S. Treasury Department said. 

"As with any customer,...

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