Hemp Banking: The Farm Bill and Other Developments

This article reviews the landscape of laws and regulation regarding serving businesses related to the sale of marijuana or cannabis-derivative products.

Whether a credit union decides to bank hemp or other cannabis related businesses is a risk-based business decision for the credit union. Assessing that risk requires understanding a constantly changing legal and regulatory environment and the credit union's own obligations under the Bank Secrecy Act (BSA). This article explores the 2018 version of the Agriculture Improvement Act of 2018 (2018 Farm Bill) as it relates to hemp legalization, its implications for cannabis-derived products, how those products differ from marijuana and offers clarification on which cannabis-derivative products are currently federally legal.

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