For Bill Barr, the Federal Reserve, Wells Fargo, and Nasdaq, the rules for the burgeoning marijuana industry are clear: there should be none, and there are no services for anyone involved in growing ganja in clear violation of the resultant Laws and regulations.
The only problem with this argument is that the law is not so clear, since Congress legalized the production of hemp two years ago while maintaining the marijuana ban. Despite this fine distinction, the fact remains that both products are the same plant. Given all these gray areas, it still seemed grumpy to continue to consider the mere cultivation of cannabis sativa itself as a suspicious activity that required an endless series of suspicious activity reports, and so the regulators who needed to review these lengthy reports decided they were existential again in December not necessary anymore. However, so that Wells Fargo has not decided to follow this advice so that everything is possible, the Financial Crimes Enforcement Network can provide guidance on this matter that is about as clear as the legal distinction between marijuana and hemp.
Banks and other institutions need to tailor anti-money laundering programs to reflect the specific risks associated with customers who produce hemp, a strain of the cannabis plant that is commonly used for their fiber, as is the case with any other customer The case is the Financial Crimes The Enforcement Network [FinCEN] said in a guide that was released this week. Financial institutions are expected to confirm that customers who grow hemp meet the licensing requirements of the state, tribal government, or the USDA by either obtaining a written statement from customers or a copy of the license, FinCEN said.
While banks no longer have to submit SARs to customers just because they are legally involved in growing hemp, financial institutions are expected to monitor these customers' transactions for signs of suspicious activity and to submit an SAR if they become aware of any illegal activity. FinCEN said.
According to FinCEN [WSJ], banks are still expected to monitor the transactions of cannabis producers.
