The legal cannabis industry took another financial blow this week after the U.S. Federal Reserve announced that chartering a bank specifically for funds from cannabis businesses is “criminal.”
This announcement came as a result of a lawsuit from the Denver-based Fourth Corner Credit Union. The credit union, which catered exclusively to marijuana businesses and associated companies, applied for an account in late 2014 after receiving a state charter, but the Federal Reserve Bank of Kansas City denied their application for a master account. They were also denied deposit insurance by the National Credit Union Association, which may have influenced the decision of the Federal Reserve.
Fourth Corner Credit Union filed lawsuits against both government agencies in the U.S. District Court of Denver, alleging that “The NCUA and FRB-KC acted in concert to unlawfully block [Fourth Corner Credit Union] from gaining access to the Federal Reserve payments system.”
– Read the entire article at Leafly News.