After a 39-month legal battle, the Fourth Corner Credit Union, the nation's first state-chartered marijuana credit union, finally received a conditional approval by the Federal Reserve Bank of Kansas for a master account that will eventually allow the Denver-based credit union to open its doors.
In a Feb. 2 letter, FRB-KC said it will issue a master account to TFCCU but only after it meets certain conditions with the Colorado Division of Financial Services. The credit union secured its state charter to serve the marijuana industry in November 2014.
According to the letter, the credit union cannot service marijuana-related business and that it will implement appropriate controls and enhanced due diligence to ensure that TFCCU does not provide financial services to MRBs that includes "plant-touching businesses or persons with ownership in those businesses." That was a major issue with the FRB-KC because marijuana is prohibited under federal law.
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