Marijuana Credit Union Could be Open in Colorado by January 1 Under State Charter
Colorado marijuana businesses may soon be able to move away from using cash-only systems.
According to The Denver Post:
The Colorado Division of Financial Services … issued Fourth Corner Credit Union an unconditional charter to operate, the first state credit-union charter issued in nearly a decade.
The next hurdles will be obtaining insurance from the National Credit Union Administration, the federal regulator of credit unions, and getting a master account from the Federal Reserve System.
Gov. John Hickenlooper’s office called the charter “the end of the line” for the state’s efforts to solve the marijuana industry’s nagging problem: obtaining banking services. Although the NCUA insurance is not guaranteed — sale and consumption of marijuana remain illegal under federal law — Fourth Corner can operate until NCUA makes its decision.
“A Colorado law of 1981 allows a credit union to open its doors while an application for share-deposit insurance is pending,” said attorney Mark Mason, one of Fourth Corner’s key organizers.
Currently, many banks and other financial service providers have been unwilling to work with the marijuana industry out of fear of violating federal law. Some lawmakers have been trying to address this issue with the help of the National Cannabis Industry Association, but until they are successful, such credit unions may be the only solution available to marijuana businesses.