One of many hurdles the industrial hemp industry will need to contend with was cleared this past week.
In a press release, the Minnesota Industrial Hemp Association, a nonprofit trade association in Apple Valley, applauded a clarification on the legal status of hemp growth from four federal agencies and state bank regulators. The reaction follows a statement from the Federal Reserve Board, the Federal Deposit Insurance Corportation, FinCEN, the Office of the Comptroller of the Currency, and the Conference of State Bank Supervisors. The statement says banks are no longer required to file suspicious activity reports for customers solely because they are engaged in the growth or cultivation of hemp.
“This is a critical and long-awaited step for the banking community as it works to navigate the regulatory landscape related to the re-emerging industrial hemp sector,” said Dave Ladd, president of the Minnesota Industrial Hemp Association. “Much work remains to be done in this, and numerous other areas, but the importance of this guidance cannot be understated.”