U.S. officials on Monday advised banks to consider collecting detailed business-registration records from clients in the hemp industry but questions remain as to how much due diligence such firms require, sources told ACAMS moneylaundering.com. In four pages of guidance, the Treasury Department's Financial Crimes Enforcement Network, or FinCEN, sought to clarify how banks and other institutions should screen businesses that produce hemp, a non-psychoactive strain of Cannabis whose production federal lawmakers effectively legalized in 2018 by removing it from a list of controlled substances. But given the difficulty of confirming that a hemp client is not also secretly growing marijuana,...
The Financial Crimes Enforcement Network issued guidance concerning due diligence requirements under the Bank Secrecy Act for hemp-related business customers.
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