Colorado law sets up world's first marijuana banks; feds must OK

http://gazette.com/colorado-law-sets-up-worlds-first-marijuana-banks-feds-must-ok/article/1521085

Colorado law sets up world's first marijuana banks; feds must OK
By Ivan Moreno, Associated Press • Updated: June 6, 2014 at 1:04 pm

DENVER — Seeking to move marijuana businesses away from cash-only operations, Gov. John Hickenlooper signed legislation Friday that tries to establish the world's first financial system for the newly legal industry in Colorado.

The legislation seeks to form a network of uninsured cooperatives designed to give pot businesses a way to access basic banking services like checking. But approval from the Federal Reserve remains a hurdle.

Out of fear of violating federal law, banks don't work with marijuana businesses. That has led to concerns that the burgeoning marijuana industry could be a target for robberies.

Mike Elliott, executive director of the Marijuana Industry Group, said a member of his organization was robbed a few days ago. The cash-only model has become stressful for businesses and their employees, he said.