Recent Hemp Banking Guidance from NCUA, USDA and FinCEN

Written By Reginald Watson, Regulatory Compliance Counsel

In recent months, the National Credit Union Administration (NCUA), the U.S. Department of Agriculture (USDA) and the Financial Crimes Enforcement Network (FinCEN) have each provided guidance to help financial institutions with providing banking services to lawfully operating businesses involved with the growth or cultivation of hemp. Hemp is a derivative of cannabis that by definition does not cause any intoxicating effects. NCUA provides general guidance to help credit unions understand and evaluate the risks of serving hemp-related businesses. The USDA’s interim final rule creates a regulatory framework for the growth and cultivation of hemp. FinCEN issued its initial interpretations in response to the USDA interim final rule.