Regulatory Alerts2020-06-29
FinCEN Guidance Regarding Due Diligence Requirements under the Bank Secrecy Act for Hemp-Related Business Customers
The Financial Crimes Enforcement Network issued this guidance to clarify Bank Secrecy Act due diligence and anti-money laundering requirements for financial institutions serving hemp-related businesses. Institutions must conduct standard customer due diligence and may verify compliance with federal or state licensing through written attestations or license copies, tailoring risk assessments to each customer. Suspicious activity reports are not required solely for lawful hemp cultivation but must be filed if transactions involve illegal activities, such as operating without a license or commingling proceeds with marijuana-related businesses.
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