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A Colorado credit union has taken the Federal Reserve Bank of Kansas City to court over the right to handle the finances of cannabis advocacy groups. The Federal Reserve Bank refused the Fourth Corner Credit Union a master account because federal law prevents banks from handling funds associated with a federally-prohibited drug. The credit union sued over this decision, arguing that they only wished to serve cannabis advocacy groups, who were not directly handling funds associated with cannabis production or sales.
Fourth Corner has been fighting for its right to serve pro-cannabis organizations since November of 2014, when it received a state charter to serve state-legal recreational canna-businesses in Colorado. The business was denied a master account by the Federal Reserve over its decision to serve the cannabis industry. This master account is necessary for any bank in the country, as it gives the bank access to the nation’s banking system.
The credit union changed its business plan, announcing that it would only serve cannabis advocacy groups, and therefore would not be illegally handling funds directly related to the plant. Regardless, the Federal…