The global industrial hemp market is projected to grow from $4.7 billion in 2019 to $26.6 billion by 2025. This represents an opportunity, but also a potential compliance headache, for financial institutions interested in servicing this space.
Why a headache? As you might know, hemp comes from the cannabis plant, the same source of a very famous drug that remains illegal under federal law in the United States, along with many other countries. Hemp itself is not illegal, and along with other uses it’s the source for CDB oil, a booming consumer product with a variety of applications. However, different states have different regulations, some states require fairly complex licensing and tracing of crops, and so-called “hot hemp” can sometimes tip over into illegal territory.
Confused yet? Fortunately, we have a well-informed guide to the world of hemp and commercial banking in the form of Amanda DuPont, Public Records Product Expert with Thomson Reuters. On this CrimeCast, she shares insights on why hemp is such a hot topic, the legal background on banking hemp, and key considerations for financial institutions.