Colorado approves 'pot' banking plan

Thursday, May 8, 2014

Colorado lawmakers approved the world's first financial system for the marijuana industry Wednesday, a network of uninsured cooperatives designed to give "pot" businesses a way to access basic banking services.

The plan seeks to move the marijuana industry away from its cash-only roots. Banks routinely reject marijuana businesses for even basic services such as checking accounts because they fear running afoul of federal law, which considers marijuana and its proceeds illegal.

Colorado became the first state to allow recreational "pot" sales, which started Jan. 1. Washington state will follow suit, with retail sales expect to start in July.

The U.S. Treasury Department said in February that banks could serve the marijuana industry under certain conditions.

But most banks have shrugged at the Treasury guidelines, calling them too onerous to accept marijuana-related clients. The result is a marijuana industry that still relies largely on cash.

A Section on 05/08/2014