Marijuana industry's attempt to join federal banking system rejected by regulators

IndustriesAssociated Press

The marijuana industry is hoping a federal judge will force regulators to let pot businesses access the banking system by setting up its own credit union.

A pair of recently filed lawsuits in Denver challenge recent decisions by the U.S. Federal Reserve and the National Credit Union Administration to deny applications from the Fourth Corner Credit Union.

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The credit union was set up last year to serve Colorado's marijuana industry, but it needs permission from federal insurers and regulators before opening for business.

The Federal Reserve rejected Fourth Corner's application earlier this month.

The decision means many pot businesses still use elaborate banking work-arounds from paying the power bill at facilities with money orders to spritzing cash with air freshener to avoid bank detection.


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