ANCHORAGE, Alaska — An Alaska credit union intends to discontinue a pilot program to provide checking and savings accounts to marijuana-related businesses.
The Anchorage Daily News reported Tuesday that Credit Union 1 will end the program Aug. 30 because a critical insurance coverage will no longer be available.
Credit Union 1 announced the program’s launch in November to establish financial services for the primarily cash-operated industry.
The newspaper reports cannabis businesses often operate in cash because banks and credit unions are wary of taking on clients whose product is still federally illegal.
Credit Union 1 CEO James Wileman says marijuana-related businesses cannot continue the program beyond a pilot phase without the liability coverage.
He says four marijuana-related businesses participated in the program, which did not perform as well as the credit union expected.
Information from: Anchorage Daily News, http://www.adn.com
The Associated Press