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.
The Cannabis Related Business Procedures Update is designed to implement process to reduce the risk of issues related to serving customers with Cannabis Related Businesses.