Bradley attorney Whitt Steineker was quoted in Law360 on regulators' new hemp banking guidance that was intended to allay bankers' concerns about the crop by clarifying they no longer need to submit suspicious activity reports, or SARs, for clients “solely” because they are involved in hemp production. However, the guidance on its own is not enough to persuade hesitant financial institutions to enter the space.
“The vast majority of people I talk to in banks still are not in a place where they want to get into the business,” said Steineker.
“The savvy people who are considering banking hemp, but have decided not to, are [asking]: What types of protections would we have to put in place to make sure that we’re not unknowingly banking marijuana proceeds?” he added. “What would be enough to satisfy our regulators and our obligations under the law?”
The original article, “New Hemp Banking Guidance Unlikely To Sway Wary Lenders” first appeared in Law360 on December 12, 2019 (login required).