The 2018 Farm Bill removed hemp and its derivatives from Schedule I of the Controlled Substances Act, enabling it to be developed in the United States below industrial hemp pilot provisions of the 2014 Farm Bill.
The United States Division of Agriculture (USDA) has issued a legal opinion interpreting the 2018 Farm Bill and is at present operating on establishing regulations and recommendations for legal hemp production beyond the 2014 Farm Bill.
On Monday, August 19, the National Credit Union Administration (NCUA) released interim guidance for federally-insured credit unions wishing to give monetary solutions for legally-operating hemp firms in the United States.
NCUA is an independent federal agency produced by the U.S. Congress in 1970 to insure deposits at federally-insured credit unions, shield their members and charters, and regulate federal credit unions.
“Lawful hemp firms give fascinating new possibilities for rural communities,” stated NCUA Chairman Rodney Hood in a press release. “I think today’s interim guidance keeps with the mission of the nation’s cooperative credit program to serve people today who have been overlooked and underserved.”
According to the guidance, credit unions are not essential to submit suspicious activity reports for legal hemp firms as they need to do with non- hemp cannabis firms unless there is actual suspicious activity taking spot such as cash laundering.
Credit unions are nevertheless essential to retain suitable due diligence for hemp-associated accounts and comply with Bank Secrecy Act and Anti-Dollars Laundering guidelines.
The new guidance states that credit unions could also give loans to lawfully-operating hemp-associated firms in accordance with NCUA regulations.
“Many credit unions have a lengthy and effective history of giving solutions to the agriculture sector,” stated Hood. “My expectation is that credit unions will thoughtfully look at whether or not they are in a position to safely and correctly serve lawfully operating hemp-associated firms inside their fields of membership.”
The new interim guidance will be updated as necessary and following regulations and recommendations are finalized by the USDA.