Senate Majority Leader Mitch McConnell (R-Kentucky) and Senator Ron Wyden (D-Oregon) recently sent letters regarding hemp banking to four key United States finance regulators advocating for hemp banking. Letters requested guidance to ease any concerns banks and other financial institutions may have with providing services to hemp businesses.
Financial Regulatory Bodies
The following four financial regulatory bodies received letters. You can read them in there entirety here:
Here is a quote from the letter to OCC:
One challenge facing the industry is the inability to access capital and traditional lending services through banks. We have consistently heard from lawful hemp farmers and producers about the lack of access to financial products from banks. Many of them have faced difficulty securing financing and credit products to start or expand their businesses, and difficulty establishing accounts to manage cash flow and business expenses. While some banks have agreed to offer financial services to the growing hemp industry, many banks have not due to confusion over the legal status of hemp. However, as hemp is no longer a controlled substance, banks should feel secure in engaging with this industry. With these concerns in mind, we are asking the Office of the Comptroller of the Currency (OCC) to offer guidance to ease any concerns banks may have with providing services to legal hemp businesses. Legal hemp businesses should be treated just like any other businesses and not discriminated against. We believe clarification from the OCC on this front would help ensure this legal industry can compete on a level playing field. Senators McConnel & Wyden, Letter regarding hemp banking to the Comptroller of Currency (OCC) April 2, 2019
We will be monitoring developments as they arise, as well as any published responses from these agencies. Feel free to Contact Us to book a consultation regarding your hemp business and banking opportunities.