NCUA Issues Guidance on Serving Hemp Businesses
Credit unions serving hemp-related businesses should review Regulatory Alert for guidance.
The National Credit Union Administration (NCUA) issued Regulatory Alert 19-RA-02 to provide interim guidance to credit unions regarding serving lawfully operating hemp businesses.
The alert points out that while the 2018 Farm Bill removed hemp from Schedule 1 of the Controlled Substances Act, it may not yet be produced lawfully under federal law unless it is produced under the industrial hemp pilot provisions of the Agricultural Act of 2014.
For hemp production to be legal under federal law beyond the 2014 Farm Bill pilot, the USDA must first promulgate regulations and guidelines to implement the hemp production provisions of the 2018 Farm Bill.
Additionally, states have the ability to regulate or even restrict the production or possession of hemp under state law.
The guidance also provides considerations for credit unions choosing to serve hemp-related businesses. Some of the considerations include:
- Having BSA and AML program that is commensurate with the level of complexity and risk involved and monitoring the businesses for compliance with state or federal provisions.
- Understanding of federal and state laws that the hemp-related businesses need to operate under.
Question of the Week
Q. Does a power of attorney document have to be filed with a court or recorded with the county to be effective?
A. In most cases, no. The only circumstances where a power of attorney document needs to be filed is when it will be used to perform real estate transactions, in which case it needs to be recorded with the county. However, filing the document with the court would allow the member to get certified copies should they be needed to satisfy the requirements of financial institutions, creditors, or other interested parties.
National Credit Union Administration (NCUA)
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Financial Crimes Enforcement Network (FinCEN)
FinCEN issued advisory FIN-2019-A006 as an advisory to financial institutions on illicit financial schemes and methods related to the trafficking of fentanyl and other synthetic opioids.
Office of Foreign Assets Control (OFAC)
OFAC has updated the SDN list as of Aug. 21, 2019. The last update prior to this was Aug. 6, 2019.
Questions? Contact the Compliance Hotline: 1.800.546.4465; [email protected].