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#2259082 - 09/01/21 02:02 PM Banking CBD Customers
jonv Offline
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I realize banking CBD customers has been discussed at nauseam, but I wanted to get a few ideas while I work on our CBD Policies. As a bank, we have decided to allow CBD customers to bank with us (assuming they Hemp derived CBD products with less than .3% THC). As everyone knows that has studies CBD, per the FDA, it is currently illegal to market CBD products by adding it to a food (e.g. CBD gummies). We have a question in our draft CBD Questionnaire that states, "Do you market Hemp or CBD products by adding it to a food or labeling it as a dietary supplement?" This is a simple question, but how are banks handling CBD customers that respond "YES" to this question? I'm leaning toward that we turn these customers away and decline to open the account, but I wanted to get others opinion.

In summary, for banks that allow CBD customers, do you allow customers to open accounts that add CBD to food or market it as a dietary supplement?

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#2259897 - 09/20/21 01:12 PM Re: Banking CBD Customers jonv
jonv Offline
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Posts: 101
Just seeing if anyone has any thoughts on banking clients that sell CBD products that added to foods (i.e CBD gummies)? This appears to be a standard question by most banks in their risk assessment process, but I would like to better understand if banks refuse services to these entities or just risk rate them higher. Thanks.

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#2259916 - 09/20/21 03:23 PM Re: Banking CBD Customers jonv
ColoradoAML Offline
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We don't bank these customers, but during our risk assessment process we concluded that if we were to, we would not serve customers that sell CBD products that are made to be ingested. This decision was made based on FDA statements at the time.

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#2259943 - 09/20/21 06:47 PM Re: Banking CBD Customers jonv
jonv Offline
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Posts: 101
Thank you ColoradoAML.

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#2259963 - 09/20/21 10:33 PM Re: Banking CBD Customers jonv
CULady Offline
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Posts: 493
WA
Also, make sure you check state law! Here in WA they can sell CBD food items in a licensed marijuana dispensary. Not sure what state you're in or if other states have similar laws.

https://agr.wa.gov/departments/food-safety/food-safety/hemp-cbd-in-food

Good question though, you led me down an interesting rabbit hole today as I knew CBD gummies and stuff were being sold around here! smile

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#2260062 - 09/22/21 03:51 PM Re: Banking CBD Customers jonv
praBSA Offline
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Joined: Aug 2018
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As an aside, my bank, like many others has not opened accounts for MRBs. I just came on board two weeks ago in NY, and since it was recently legalized, I have been asked to build out a program that delineates direct and indirect MRBs and start creating an EDD process for them as well as building out the policy itself. The Board and Upper Management are comfortable with this risk. I have no problem with it as the BSA Officer as long as my staff can handle the various SARs and due diligence required. I wouldn't bank any direct MRBs but we have been approached by a few large commercial developers wanting to build out properties for potential tenants (dispensaries), etc. Has any built out a program yet? If so, would anyone be willing to share any documentation? Please toss me a message and I would be happy to chat.

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#2260064 - 09/22/21 04:12 PM Re: Banking CBD Customers jonv
HappyGilmore Offline
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Posts: 19,311
Pulling people out of the ditc...
just read a news article today that the House has okayed a bill to allow banking for MRBs, but a lot of questions remain from that. but perhaps a start...
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#2260066 - 09/22/21 04:28 PM Re: Banking CBD Customers jonv
edAudit Online
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You are here
I an not claim to be an expert in this but make sure someone has figured out the additional compliance costs to bank these clients and ensure that your fee schedule is appropriate to bank them.
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