Pub. 16 2019 Issue 1

18 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S L ast year the most frequently asked topic over at Compliance Alliance was, without a doubt, ben- eficial ownership. With the effective date for that rule well behind us, today the top BSA question we are getting is about how the heck to deal with marijuana banking. Now the issue with Marijuana Banking is that there are no set definitions and conflict between state and federal laws. Therefore, it’s important to discuss both the definitions that do exist and strategies for the bank to make their own interpretations. First, the 2018 Farm Bill clarified, from a federal perspective, that hemp cultivation is legal and not just restricted to pilot programs for research purposes which it was before. Impor- tantly, the Act also allows interstate transfer of hemp products. Also, the passage of the law allows for the sale and possession of hemp-based products, as long as those products are consis- tent with the parameters of that rule. So, what are the param- eters? There are still tight restrictions on this type of product. Hemp under this rule is limited to less than 0.3% THC. Second, the Bill asks state departments of agriculture to create a regula- By Silvia Garcia Maggio, Deputy General Counsel MARIJUANA BANKING IN 2019