Work Item
ASTM WK86606
New Guide for Payment Processing Compliance in US Regulated Cannabis Industries
1. Scope
This standard is not intended to address hemp related business financial transactions. This standard guide recommends payment provider requirements to conduct financial transactions in jurisdictions where regulated cannabis-related businesses are licensed to operate. The referenced authoritative documents and recommended actions are intended to comply with current US federal banking requirements. Future application or application in other jurisdictions shall follow equivalent authoritative documents. These authoritative documents may include but are not limited to statutes, regulations, policies, procedures, and guidance. This standard provides a framework for jurisdictions to maintain an approved list of payment providers and establishes the functional standards a payment provider should meet to be approved
Keywords
banking; cannabis; finance; payment provider; financial institution,; payment processing; suspicious activity report; sar; bank secrecy act; bsa
Rationale
This standard provides the newly regulated cannabis industry with guidance for payment providers to provide services to cannabis-related businesses. The restrictions that prevent the industry from using common financial services creates a cash environment that presents many financial and safety risks. This standard can be used by payment providers to establish the policies and procedure to provide financial services to cannabis-related business and by regulators to establish administrative regulations.
The title and scope are in draft form and are under development within this ASTM Committee.
Work Item Status
Date Initiated: 05-31-2023
Technical Contact: Ed Nodland
Item: 001
Ballot: D37.10 (23-01)
Status: Will Reballot Item
Item: 002
Ballot: D37 (23-08)
Status: Negative Votes Need Resolution