Marijuana and the Finance Industry

(Fall 2015) A branch of the Federal Reserve has declined a credit union’s request to conduct business with other financial institutions and licensed entities involved in Colorado’s marijuana sector. This prompted the credit union to sue the Federal Reserve for equal access to the financial system. Marijuana is legal in Colorado. However, most banks shy away from the marijuana industry since it is still illegal at the federal level, and financial institutions fear legal repercussions. As a result, marijuana businesses often resort to using cash only, which limits their ability to succeed.

Early in 2014, the Obama administration issued federal banking guidelines for working with approved marijuana merchants.

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