WASHINGTON—The Financial Crimes Enforcement Network (FinCEN) has released guidance to address questions related to Bank Secrecy Act (BSA)/anti-money laundering (AML) regulatory requirements for hemp-related business customers.
Further guidance is expected to be released once the U.S. Department of Agriculture finalizes forthcoming regulations and guidelines, NAFCU said.
FinCEN's new guidance explains how financial institutions can conduct due diligence for hemp-related businesses and identifies the type of information and documentation financial institutions can collect from hemp-related businesses to comply with BSA regulatory requirements.
The Specifics
The guidance specifically addresses:
- BSA/AML program expectations
- Suspicious activity reporting (SAR), including that SARs do not have to be filed unless meeting the threshold
- Currency transaction reports and FinCEN Form 8300 (reporting of cash payments over $10,000 received in a trade or business)
The guidance further provides that financial institutions may confirm a hemp grower's compliance with state, tribal, or USDA licensing requirements by either:
- Obtaining a written attestation by the hemp grower that they are validly licensed
- Copying such license
Additional Information
Additional information depends of risks posed and may include crop inspection or testing reports, license renewals, and updated attestations from the business, NAFCU noted.
FinCEN notes that the guidance is intended to enhance the availability of financial services for, and the financial transparency of, hemp-related businesses in compliance with federal law. It supplements the 2019 interagency statement on providing financial services to customers engaged in hemp-related businesses.