Conducting Due Diligence for Hemp-Related Businesses

The “Hemp Farming Act of 2018,” as passed in the 2018 Farm Bill, legalized industrial hemp and hemp-derived CBD at the federal level. This has opened up an entirely new industry of accountholders needing deposit accounts, loans, and other financial products. How do you identify those businesses? What initial and ongoing due diligence and reporting will be expected? 

In June 2020, FinCEN released guidance to answer these questions and explain how financial institutions can conduct due diligence for these hemp-related businesses. In this session we will review this guidance as well as highlight how it is different than FinCEN’s 2014 marijuana-related business guidance.

Covered Topics

  • Define hemp-related, marijuana-related and CBD businesses
  • Distinguish FinCEN’s recently issued guidance for conducting due diligence on hemp-related businesses and FinCEN’s MRB Guidance
  • Update your compliance program, including risk assessment, monitoring, and training
  • Discuss legislation on the horizon for banking marijuana-related businesses
  • Use provided tools to establish your initial and ongoing due diligence of these

Who Should Attend?

This jam-packed session is for Loan Officers, Branch Managers, Operations Personnel, Bank Secrecy Act Officers, and Compliance Officers.