Colorado charters first credit union for marijuana industry, but fed approvals remain

Industries Associated Press

Colorado has granted a charter for the first financial institution to serve the state's cash-only marijuana industry. But action by the National Credit Union Administration and the Federal Reserve is needed, and pot's still illegal under federal law.

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The charter is a step to resolving a problem for the industry, which generally is unable to obtain traditional banking services. Dispensaries frequently transport cash — a crime risk — and use cash to pay employees, expenses and taxes.

The Division of Financial Services issued the charter Wednesday to The Fourth Corner Credit Union. The Denver Post reports (http://dpo.st/11CYeJF) it could open in January.

Fourth Corner must get insurance from the National Credit Union Administration, but can operate until the administration decides. It also must get a master account from the Federal Reserve.

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Information from: The Denver Post, http://www.denverpost.com