Credit union to end marijuana business pilot program

    Anchorage, Alaska (AP) - 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.

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