The American Bankers Association joined more than a dozen industry and advocacy trade organizations in a letter to Senate Banking Committee Chairman Mike Crapo (R-Idaho) today urging him act swiftly to advance the SAFE Banking Act, which would provide a safe harbor for depository institutions seeking to serve legitimate cannabis-related businesses in states where such activity is legal.
The Department of Agriculture announced last week that it will delay the enforcement of certain requirements of a December 2019 interim final rule for industrial hemp producers.
While the 2018 Farm Bill authorized production and processing of hemp plants with less than 0.3% THC content, bankers need to carefully review USDA’s rules for production and licensing. Meanwhile, legal production of hemp derivatives will depend on guidance from the FDA.
ABA today recommended several changes to the U.S. Department of Agriculture’s interim final rule that would facilitate banks offering services to hemp growers and hemp-related businesses.
The four bipartisan lead sponsors of the SAFE Banking Act—passed by the House last fall—yesterday wrote to Senate Banking Chairman Mike Crapo (R-Ohio) cautioning him not to limit the bill’s safe harbor for financial institutions that choose to serve legitimate cannabis businesses in states where it is legal.
After Senate Banking Committee Chairman Mike Crapo (R-Idaho) raised concerns last month about the ABA-supported SAFE Banking Act, ABA today responded to those concerns and urged him to advance the SAFE Banking Act or similar legislation on cannabis banking this year.
The federal banking agencies and the Financial Crimes Enforcement Network, in consultation with the Conference of State Bank Supervisors, today issued guidance long sought by ABA on banks’ Bank Secrecy Act obligations related to hemp producers.
The United States Department of Agriculture today issued a long-awaited interim final rule establishing new regulations and procedures for the legal production of industrial hemp, as required by the 2018 Farm Bill.