On Monday, the Financial Crimes Enforcement Network (FinCEN), which is part of the Treasury Department, released updated guidance for banks and credit unions that service hemp businesses. The new memo explains changes in reporting requirements and emphasizes that because the crop is no longer a controlled substance, financial institutions do not have to automatically flag transactions that are from legitimate hemp business accounts. Unlike for cannabis companies, banks and credit unions do not have to automatically file suspicious activity reports solely because a business client is involved in the legal hemp market.
