Federal Agency Gives Update On Hemp Banking Rules For Credit Unions

Federal Agency Gives Update On Hemp Banking Rules For Credit Unions

The National Credit Union Administration (NCUA) issued a memo on Tuesday explaining issues related to providing financial services to hemp businesses. While the federal agency provided guidance on the topic last year after the crop was legalized under the 2018 Farm Bill, it said the new document’s “purpose is to provide additional information for credit unions that are serving, or considering serving, legal hemp-related businesses, as they, too, have been affected by the COVID-19 pandemic.” “Lawful hemp businesses provide exciting new opportunities for rural communities, and credit unions should carefully consider whether they can safely and properly serve lawfully operating hemp-related businesses within their fields of membership,” NCUA Chairman Rodney E. Hood wrote. “It is important that credit unions stay current with the federal, state and Native American tribal laws and regulations that apply to any hemp-related businesses they serve,” he said, noting that the letter does not seek to provide a formal interpretation of U.S. Department of Agriculture (USDA) rules for the crop. Instead, the agency listed 17 questions and answers about banking hemp businesses that credit unions are likely to have. That includes information about the status of the USDA’s interim final rule, compliance for hemp production, NCUA rules for serving the industry and more. The agency said its “examiners will be collecting data through the examination process concerning the types of services credit unions are providing to hemp-related businesses” in order to “help the agency better understand how it can assist credit unions serving hemp-related businesses.” “The…

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Source : MJ moment
Link to original : Federal Agency Gives Update On Hemp Banking Rules For Credit Unions
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