Wisconsin Banks May Soon Be Able to Do Proper Business With the Hemp Industry
Thursday, December 5th, 2019 -- 8:52 AM
(WRN) -Wisconsin banks may soon be able to start doing proper business with the hemp industry.Wisconsin banks may soon be able to start doing proper business with the hemp industry. Federal banking regulators have loosened the rules regarding hemp, which hadn't quite caught up with federal laws that made it legal to grow. Wisconsin Bankers Association attorney Scott Birrenkott says this will be a boost for both banks and farmers.
"This is a new commodity, this is a new opportunity, they want to be able to provide those banking resources for their customers."
Birrenkott says banking regulations hadn't caught up with federal laws legalizing hemp, which made it hard to do business with farmers and processors.
"So they want to serve their communities, they want to do business, but they want to make sure they're doing within the confines of those rules and regulations as well."
Birrenkott says former rules required banks to file suspicious activity reports on anyone trying to open a deposit for a hemp based business.
"So they wanted to help their customers, they wanted to help their communities, but they also wanted to make sure they were meeting their requirements as well."
The move will allow banks to start treating hemp like any other commodity on the market, and will allow both growers and processors to open deposits and get loans.
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