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ABA: The American Bankers Association
Compliance News

ABA Seeks Greater Clarity on Banks’ Ability to Serve Industrial Hemp Businesses

In a letter to financial regulatory agencies, ABA called for greater clarification on how banks may serve businesses dealing with hemp—a low-THC strain of marijuana that was removed from the Controlled Substances Act by Congress as part of the 2018 Farm Bill. Despite this legislative action, regulators have yet to issue a clear directive on distinguishing legal hemp and illegal marijuana, leaving many banks uncertain about whether they can legally serve these businesses, ABA noted. The association called for guidance on retail products containing hemp or hemp-derived CBD and the appropriate procedures for sourcing those products back to legal processors.