NY State issues new banking rules for medical marijuana and industrial hemp businesses

Medical marijuana and industrial hemp businesses need banking services as much as other businesses do. (Photo: Shutterstock)

On July 3, New York’s Gov. Andrew M. Cuomo directed the state’s Department of Financial Services (DFS)  to support the development of medical marijuana and industrial hemp businesses by issuing guidance regarding what his statement announcing the guidance called the “safe and sound provision of banking services for these businesses.”

According to Cuomo’s statement, the DFS guidance is designed to encourage New York state-chartered banks and credit unions to consider establishing banking relationships with medical marijuana-related businesses that are operating in New York in full compliance with all applicable New York State laws and regulations, including the New York Compassionate Care Act, and the applicable regulations and requirements of the state Department of Health. The guidance also encourages state-chartered banks and credit unions to support the development of industrial hemp businesses statewide.