Colorado Credit Union Seeks Approval for Cannabis

Until now, cannabis producers and marketers have had to rely on a cash-based system as they have not been allowed to use the federal banking system for their business transactions. But now a Colorado credit union is looking to change that.

A pair of lawsuits filed in Denver this week challenge recent decisions by the U.S. Federal Reserve and the National Credit Union Administration to deny applications from Fourth Corner Credit Union.

The credit union was set up last year to serve Colorado’s marijuana industry, but it needed permission from federal insurers and regulators before opening for business.

The Federal Reserve rejected Fourth Corner’s application earlier this month.

The decision means many pot businesses still use elaborate banking workarounds — from paying the power bill with money orders to spritzing skunky cash with Febreze to avoid scrutiny.

Find out more at CBS Money Watch.