Expanding Regulations for Hemp Banking

Bloomberg Law

27 Oct 2020

Malka Levitin and Marc-Alain Galeazzi authored an article for Bloomberg Law covering the current state of the U.S. hemp regulatory regime, including the Financial Crimes Enforcement Network’s (FinCEN) recent guidance explaining how Bank Secrecy Act (BSA) and anti-money laundering (AML) obligations apply to hemp-related customers.

“Financial institutions and others considering doing business with hemp companies should exercise caution and due diligence and should continually monitor relevant laws, regulations, and guidance, as these change regularly,” the authors wrote.

“Despite the risks posed by the rapidly changing and sometimes unpredictable legal and regulatory environment, the expanding hemp market offers substantial growth opportunities and a potential early-mover advantage if marijuana is legalized at the federal level, or, at a minimum, federal law is changed to permit financial institutions to provide their services to MRBs in the coming years,” the authors added.

Read the full article.



Unsolicited e-mails and information sent to Morrison & Foerster will not be considered confidential, may be disclosed to others pursuant to our Privacy Policy, may not receive a response, and do not create an attorney-client relationship with Morrison & Foerster. If you are not already a client of Morrison & Foerster, do not include any confidential information in this message. Also, please note that our attorneys do not seek to practice law in any jurisdiction in which they are not properly authorized to do so.