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District Court Deems Transfer of Cannabis Funds a ‘Criminal Activity’

By Colby Adams

A U.S. district court on Tuesday dismissed a lawsuit seeking to force financial regulators to allow a Colorado credit union to transfer money from state-licensed cannabis companies in violation of federal law. In a 9-page opinion, U.S. District R. Judge Brooke Jackson rejected Fourth Corner Credit Union of Denver's petition to require Federal Reserve approval of its request for a master account permitting it to electronically transfer funds for licensed marijuana dispensaries in Colorado, one of two U.S. states to have legalized the drug's recreational use. "The problem here is that the credit union is asking the court to exercise...

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