Most states have enacted some form of legislation to decriminalize or legalize the use of cannabis based products. However, marijuana (cannabis) remains illegal under federal law, specifically the Controlled Substances Act. The federal Farm Bill of 2018 legalized hemp (cannabis with low levels of THC) produced in accordance with the state/tribal law or a federal United States Department of Agriculture (USDA) plan. As the business of dealing in cannabis based products becomes more and more prevalent, financial institutions must determine if they will bank these customers and if so, how they will mitigate the inherent risk.
Cannabis Related Business Policy Update communicates the Board’s intent to serve customers in compliance with applicable laws, regulations, and guidance in regards to the handling of Cannabis Related Businesses.