NASCUS’ ITO RESPONDS TO NCUA’s RELEASE OF INTERIM GUIDANCE ON SERVING HEMP BUSINESSES

FOR IMMEDIATE RELEASE

August 20, 2019

CONTACT: Shelton Roulhac, NASCUS Communications; [email protected]

NASCUS CEO LUCY ITO RESPONDS TO NCUA’s RELEASE OF INTERIM GUIDANCE ON SERVING HEMP BUSINESSES

Arlington, VA – In response to a request from Senate Majority Leader Mitch McConnell (R-KY), NCUA Chairman Rodney Hood informed Sen. McConnell that NCUA was releasing interim guidance permitting federally insured credit unions to provide certain financial services to legally operating hemp businesses. The guidance was published yesterday and will be revised and updated once the United States Department of Agriculture finalizes forthcoming regulations and guidelines.

 

NASCUS President and CEO Lucy Ito issued the following statements in response to the release of the interim guidance.

 

“We commend NCUA for providing additional guidance to credit unions,” said NASCUS President & CEO Lucy Ito. “While it is now legal to provide financial services to hemp businesses –  it remains illegal to serve marijuana businesses. Credit unions must consider the risks given the variability of hemp THC (tetrahydrocannabinol) levels and licensure (mono-licensing) of hemp versus cannabis businesses. Hemp and marijuana look and smell the same and the difference is that hemp plants contain no more than 0.3 percent of THC. If a credit union, knowingly or unknowingly, serves a business operating in plants that exceed the 0.3 percent threshold, the credit union could be serving an illegal marijuana business and would thus be subject to penalties. NCUA’s guidance on serving lawful hemp businesses provides credit unions with helpful clarification and given the added complexity of hemp-related compliance, credit unions must weigh the potential exposure when deciding to serve hemp businesses.”

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Information Contact:
Shelton Roulhac, Vice President, Communications, [email protected] or (703) 528-5974

NASCUS is the national association that advocates for a strong and healthy state credit union system, and whose members include state regulatory agencies, credit unions, credit union leagues, and organizations that support the state credit union system.