Quantcast

Marijuana industry faces new challenge in banking - KOAA.com | Continuous News | Colorado Springs and Pueblo

Marijuana industry faces new challenge in banking

Posted: Updated:
DENVER -

The feds are refusing to take on a credit union based out of Denver committed to banking with marijuana businesses.

The Fourth Corner Credit Union has fired back and filed suit against them, actively seeking access to the payment system. They've filed two separate lawsuits, one against the NCUA to federally insure the bank and another against the Federal Reserve Bank of Kansas City. Until they can become federally insured, they can't take on any marijuana businesses. 

Marijuana may be legal in Colorado but it's still considered illegal under federal law. Meaning most cannabis shops scattered throughout the state do not have access to a banking system. Many shops in Pueblo operate on a cash-only basis.

"It's dangerous and also not productive to do business in cash," Deirdra A. O'Gorman, CEO of The Fourth Corner Credit Union said.

That's why the credit union is asking for equal access to the financial system for pot shop owners.

"We're seeing these businesses spend at least 30 more percent than the typical small business would just in overhead alone, trying to operate these cash-based organizations," O'Gorman said.

CEO Deirdra O'Gorman says that puts the marijuana businesses at a disadvantage.

"So it's extremely arduous and doesn't really allow them to have every opportunity as another small business would have to be able to grow and thrive," she said.

Adding that cash-only businesses pose a public safety risk.

"The more money we can filter into a compliant banking system, with electronic payments, the less money can be filtered into the black market," she said.

News5 reached out to several marijuana businesses in Pueblo, but understandably, they don't want to publicize how they handle their cash.

The Southern Colorado Growers Association tells News5, they've wanted banking all along.

"In spite of all of these obstacles and impediments, the industry is really working hard to gain some traction and we just want to be their partner and help them with that goal," she said.

WEATHER
Drive the Doppler
  • Most Popular StoriesMost Popular StoriesMore>>

  • Developer built homes in danger of flooding; Town leaders "unsure" what happened

    Developer built homes in danger of flooding; Town leaders "unsure" what happened

    Friday, January 19 2018 1:13 AM EST2018-01-19 06:13:19 GMT

    News 5 Investigates has learned several newly built townhouses in Monument are in danger of flooding after the developer dissolved his business before the work was complete.  A retaining wall was supposed to be built to control water flow and erosion, but no one from the Town of Monument enforced the site development plan it approved.  

    News 5 Investigates has learned several newly built townhouses in Monument are in danger of flooding after the developer dissolved his business before the work was complete.  A retaining wall was supposed to be built to control water flow and erosion, but no one from the Town of Monument enforced the site development plan it approved.  

  • What to expect from a government shutdown

    What to expect from a government shutdown

    Friday, January 19 2018 5:51 PM EST2018-01-19 22:51:51 GMT

    In the event of a government shutdown, a surprisingly large number of federal employees will still go to work. For example, letter carriers will still deliver the mail and TSA agents will still be at the airport to screen passengers before boarding planes.

    In the event of a government shutdown, a surprisingly large number of federal employees will still go to work. For example, letter carriers will still deliver the mail and TSA agents will still be at the airport to screen passengers before boarding planes.

  • Sheriff releases report on mass shooting in Las Vegas

    Sheriff releases report on mass shooting in Las Vegas

    Friday, January 19 2018 3:31 PM EST2018-01-19 20:31:55 GMT
    The Clark Co Sheriff's Office released photos of this inside of Stephen Paddock's Hotel room.The Clark Co Sheriff's Office released photos of this inside of Stephen Paddock's Hotel room.

    Investigators say they have still not determined why Las Vegas mass shooter Stephen Paddock opened fire from his high-rise hotel suite, killing 58 people and injuring hundreds.

    Investigators say they have still not determined why Las Vegas mass shooter Stephen Paddock opened fire from his high-rise hotel suite, killing 58 people and injuring hundreds.

Powered by Frankly

© KOAA.com 2018, KOAA.com
A CORDILLERA COMMUNICATIONS Station
All rights reserved
Privacy Policy, | Terms of Service, and Ad Choices

Can't find something?