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Cannabis Campaigners' Guide News Database result:
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US: Colorado Pot Industry to Get Its Own Banking System Elyssa Kirkham Go Bankingrates Thursday 08 May 2014 Colorado and Washington are the first states to legalize recreational marijuana use. Marijuana vendors in Colorado, which began legally selling the drug earlier this year, came up against a serious logistical problem: Banks would not accept their business. Banks Steer Clear of Marijuana Sellers, Fear Laundering Charges Although marijuana is legal in these two states, banks have turned away legal marijuana money because accepting it could land them with money-laundering charges. Since the sale of marijuana became legal at the beginning of 2014, pot sellers have faced the problem of how to manage their money without bank services. Thus far, they have been forced to operate all-cash businesses, creating unnecessary risks and making it harder to track their income and taxes. Colorado’s “Cannabis Credit Co-ops” Could Be the Solution — If Fed Approves Members of the Colorado legislature from both parties came together to create a solution to the problem with what are called cannabis credit co-ops, according to The Washington Post. The bill for this action was passed Wednesday by state legislatures and will become law if signed by Colorado Gov. John Hickenlooper, reports Time magazine. The co-ops that this bill would allow, sometimes referred to as pot banks, would be state-run and function very similarly to credit unions. Through cannabis credit co-ops, licensed marijuana businesses will be able to hold checking accounts and take out loans, retail bank services vital to nearly any small business. These pot banks would also have the capacity to purchase municipal bonds and securities on behalf of members. But cannabis credit co-ops will still need approval from the U.S. Federal Reserve to accept credit cards and checks, transactions which are overseen at the federal level. The bill might provide a short-term solution for the growing Colorado pot business, but action from the Fed is still needed. “I’ve steadfastly maintained that the solution does not lie in this building, but in Washington,” state Sen. Pat Steadman, D-Denver, told The Denver Post. “This is a bill we know is imperfect, but it’s something we’re trying to do to force a dialogue on the issue. The status quo for access to financial services is unacceptable." http://www.gobankingrates.com/banking/colorado-pot-industry-banking-system/
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