See: https://www.fincen.gov/sites/default/files/2020-06/FinCEN_Hemp_Guidance_508_FINAL.pdf

FinCEN just released updated hemp-related banking guidance. For the most part, it echoes what the NCUA has said in the past year, and thus, is more detailed in terms of what EDD is expected, than the previous guidance released by the FFIEC (minus NCUA plus CSBS). However, in classic FinCEN style, they threw a "bombshell" in a footnote:



This appears to suggest that FinCEN does not view CBD as a SAR-reportable product. I've reached out to FinCEN to see if they will confirm my read of it.

Let's hope they answer something more than "refer to guidance"!

Unfortunately, the answer I received back was basically "refer to the guidance." I tried politely informing them that I read the guidance, and had a question about it, to which they responded a second time with actual quoted guidance. I gave it a third try, and got the same type of response.

They flat out won't answer a direct question about CBD/ the Food, Drug, and Cosmetics Act, which is pretty strange to me. If I were to ask whether deposits which I suspect were from the sales of drugs prohibited by the CSA, they'd essentially say that such activity would warrant reporting. Conversely, if I were to ask if the proceeds of a bake sale were subject to SAR filing, I'd imagine they'd tell me no, unless I had any concerns about the baked goods.

CBD isn't on the CSA unless it meets the definition of marijuana which it almost never does from my understanding. (Hemp = high CBD, low THC; marijuana = High THC, low CBD).

The FDA has indicated that it regulates CBD the same way it regulates anything else - if you put it in food or if you claim it has a health benefit, you're subject to the FDA regs. How do you handle other depositors that might be subject to FDA regs (health food store, sports store that sells dietary supplements, pharmacy/drug store, grocery store etc.)?