{"id":233,"date":"2019-12-04T14:06:05","date_gmt":"2019-12-04T18:06:05","guid":{"rendered":"http:\/\/blogs.duanemorris.com\/bankinglaw\/?p=233"},"modified":"2019-12-04T14:06:05","modified_gmt":"2019-12-04T18:06:05","slug":"federal-banking-regulators-take-steps-to-allow-financial-services-for-hemp-related-businesses","status":"publish","type":"post","link":"https:\/\/blogs.duanemorris.com\/bankinglaw\/2019\/12\/04\/federal-banking-regulators-take-steps-to-allow-financial-services-for-hemp-related-businesses\/","title":{"rendered":"Federal Banking Regulators Take Steps to Allow Financial Services for Hemp-Related Businesses"},"content":{"rendered":"<p>Banking has been an impediment for the cannabis industry because the Bank Secrecy Act of 1970 (BSA) and related regulations\u2015which seek to prevent money laundering and other financial crimes\u2015place onerous requirements on banks when a transaction is suspected to involve illegal activity. 12 C.F.R.\u00a0Section 21.11. Notwithstanding billions of state-legal cannabis dollars exchanging hands, the commercial banking industry, which is largely federally regulated, is virtually nonexistent in the cannabis space. In 2014, the Treasury\u2019s Financial Crimes Enforcement Network (FinCEN) provided guidance intended to enhance the banking of cannabis-related monies by establishing a category of suspicious activity reporting for \u201cmarijuana related businesses.\u201d But,\u00a0<a title=\"Marijuana Banking Update\" href=\"https:\/\/www.fincen.gov\/sites\/default\/files\/shared\/287473_3Q_FY2019_Marijuana_Banking_Update_Public.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">according to FinCEN<\/a>, as of June 30, 2019, just 553 commercial banks and 162 credit unions had filed an SAR for a \u201cmarijuana-related business.\u201d<\/p>\n<p><a href=\"https:\/\/www.duanemorris.com\/alerts\/federal_banking_regulators_take_steps_allow_financial_services_hemp_related_businesses_1219.html\">View the full <em>Alert\u00a0<\/em>on the Duane Morris LLP website.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Banking has been an impediment for the cannabis industry because the Bank Secrecy Act of 1970 (BSA) and related regulations\u2015which seek to prevent money laundering and other financial crimes\u2015place onerous requirements on banks when a transaction is suspected to involve illegal activity. 12 C.F.R.\u00a0Section 21.11. Notwithstanding billions of state-legal cannabis dollars exchanging hands, the commercial &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/blogs.duanemorris.com\/bankinglaw\/2019\/12\/04\/federal-banking-regulators-take-steps-to-allow-financial-services-for-hemp-related-businesses\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Federal Banking Regulators Take Steps to Allow Financial Services for Hemp-Related Businesses&#8221;<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[162,105,170,186,188,185,184,187],"ppma_author":[333],"class_list":["post-233","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-bank-secrecy-act","tag-banking","tag-cannabis","tag-fincen","tag-fincen-guidelines","tag-hemp","tag-seth-goldberg","tag-usda"],"authors":[{"term_id":333,"user_id":6,"is_guest":0,"slug":"duanemorris3","display_name":"Duane Morris","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/843ff6e7a8fe5fc92109b47a45f34b6cf0ea499e6e788db23456c838b0ae6747?s=96&d=blank&r=g","author_category":"1","last_name":"Sullivan","first_name":"Margaret","job_title":"","user_url":"http:\/\/www.duanemorris.com","description":"<a href=\"http:\/\/www.duanemorris.com\">Visit the Duane Morris website.<\/a>"}],"_links":{"self":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/posts\/233","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/comments?post=233"}],"version-history":[{"count":0,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/posts\/233\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/media?parent=233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/categories?post=233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/tags?post=233"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/bankinglaw\/wp-json\/wp\/v2\/ppma_author?post=233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}