The Frankenmuth Credit Union in Michigan launched a product to provide banking to marijuana companies in the area, only months after regulators went after another financial institution for a similar move.
According to the Detroit Metro Times, the Frankenmuth-based credit union:
- Created Envy, a pilot program dedicated to servicing cannabis businesses.
- Unveiled a plan to add one or two new marijuana-related business members each month for the remainder of 2021.
The credit union, which services roughly 60,000 people, is partnering with Green Check Verified, a financial technology company that enables financial institutions to “safely and efficiently” offer services to legal marijuana businesses.
The move comes after the National Credit Union Administration in March sent a cease-and-desist order, citing Live Life Federal Credit Union for failing to comply with marijuana banking regulations and ordering the financial institution to stop opening new cannabis accounts.
Since then, Michigan Gov. Gretchen Whitmer has shown support for the Secure and Fair Enforcement (SAFE) Banking Act, which would allow cannabis companies to bank with financial institutions.