We use cookies to improve your experience and optimize user-friendliness. Read our privacy policy for more information on the cookies we use and how to delete or block them. To continue browsing our site, please click accept.
On August 19, 2019, the National Credit Union Administration (NCUA) issued a regulatory alert to credit unions on serving hemp businesses. The regulatory alert, 19-RA-02, provides interim guidance in advance of forthcoming United State Department of Agriculture regulations and guidelines for hemp. In the alert, NCUA states “lending to a lawfully operating hemp-related business is permissible.” Credit unions must adhere to NCUA Rules and Regulations Part 723 and the member business loan requirements. Credit unions must also have a Bank Secrecy Act (BSA) program that addresses the risks associated with providing services to hemp businesses. Proper member due diligence processes are important. Note that if the activity is not unusual for a hemp-related business, it will not be necessary to file Suspicious Activity Reports.
Author
John Zasada, JD, CAMS – Compliance Consulting Director, Financial Institutions Group. John can be reached at zasada@doeren.com.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
To View this Resource
A quick registration is required to view our resources. You will only be asked to do this one time (unless you don't save your browser cookies).