Banks Should Verify Hemp Clients’ Licenses, Treasury Says

Financial institutions doing business with hemp growers should verify that they’re properly licensed, a Treasury Department bureau said.

Banks can verify compliance by obtaining the grower’s written statement confirming its license, or by receiving a copy of the license, according to the new guidance, issued Monday by the Financial Crimes Enforcement Network (FinCEN).

Hemp growers’ licenses should come from either a state, tribal authority, or the U.S. Department of Agriculture, the bureau said.

FinCEN’s guidance lays out its expectations for banks’ anti-money laundering and Bank Secrecy Act compliance efforts when managing accounts for hemp-related businesses. The 2018 Farm Bill ...