Federal Reserve Gives Approval to Marijuana Credit Union to Service Marijuana-Related Businesses

Colorado’s Fourth Corner Credit Union has been given permission by the Federal Reserve of Kansas City to provide financial services to marijuana-related businesses.

According to the Wall Street Journal, the Federal Reserve Bank of Kansas City granted conditional approval yesterday to Fourth Corner Credit Union to work with and provide financial services to marijuana-related businesses. The credit union’s approval comes over three years after they launched in Colorado, and over two and a half years after they filed a lawsuit against the Federal Reserve for initially denying their request to service the marijuana industry.

According to the Wall Street Journal report, Fourth Corner will not provide serves to marijuana dispensaries, as they initially planned, but will “focus on individuals and companies that support legalized marijuana.” This includes marijuana accountants, security companies and landlords, among others.

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Colorado Cannabis Bank Sues Federal Reserve

fourthColorado’s Fourth Corner Credit Union has filed lawsuits against the Federal Reserve and the National Credit Union Administration for denying it the right to operate within the banking system.

The Fourth Corner Credit Union, located in Denver, was created specifically to serve the legal cannabis industry. It got state approval back in November, but has been denied a “master account” by the Federal Reserve, which is required for them to begin legal operations. They have also been denied federal insurance from the National Credit Union Administration. In response, the credit union has filed separate lawsuits against both entities.

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Colorado Division of Financial Services Grants Charter to Credit Union for Cannabis Industry

By Associated Press

DENVER, CO — Colorado has granted a charter for the first financial institution to serve its cash-only marijuana industry.colorado

However, before it can open permanently for business, action is also required by the National Credit Union Administration and Federal Reserve.

The Colorado Division of Financial Services issued the charter Wednesday to The Fourth Corner Credit Union, which could open in January, The Denver Post reported Thursday.

The charter is a step toward resolving a significant problem for the industry, which generally is unable to obtain traditional banking services. As a result, dispensaries frequently transport cash – a crime risk – and use currency to pay employees, expenses and taxes.

Read moreColorado Division of Financial Services Grants Charter to Credit Union for Cannabis Industry