One of the big challenges facing marijuana businesses is banking – most financial institutions will not open accounts from pot-related businesses because of the risks of breaking federal laws. Although marijuana is legal in several states now, banks have to follow federal laws and regulations, which still say marijuana is illegal.
But that may soon change thanks to a new credit union opening to serve the fledgling industry according to a report from CNN.
Fourth Credit Union is supported by a group of attorneys, business owners and legalization advocates who see an opportunity where traditional bankers only see potential legal problems. Pending final approval from the Federal Reserve, it could open in January.
According to the story, dispensaries and other marijuana operations have had to operate on a cash-only basis. This of course created all sorts of headaches and risks for business owners. For example, employees have to be paid in cash at a separate location.
Fourth Credit Union founding member Mark Mason explains:
“It will be much safer than the cash-based operation that exists today. The feds should be thrilled.”
The new bank, which is one of several being considered, will benefit marijuana businesses in a variety of ways, including safety and the ability to accept credit cards, which will dramatically cut the need to keep cash at their establishments.