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In the latest developments in Fourth Corner Credit Union's case against the NCUA over share insurance coverage, the NCUA is urging a federal court to dismiss the current lawsuit as moot since the credit union amended its business plan and field of membership, and says the credit union should reapply for coverage.

Earlier this month, Fourth Corner Credit Union asked a federal court to deliver a faster resolution in its case against the NCUA now that it has received conditional approval from the Federal Reserve Bank of Kansas City to serve marijuana advocates and groups that support legalized marijuana or provide ancillary services to legal marijuana businesses in Colorado. The credit union would not serve marijuana businesses directly.

The court must now decide whether to compel mediation – as requested by Fourth Corner – or dismiss the case based on NCUA's new motion.

In a NAFCU Compliance Blog post published Friday, Special Counsel for Compliance and Research Pamela Yu outlines what's new with marijuana banking and details the latest developments in the Fourth Corner case. She discusses the directives rescinded by the attorney general that had instructed federal prosecutors to ease marijuana enforcement in states that have legalized the substance, and notes that the Bank Secrecy Act (BSA) guidance on how financial institutions can provide services to marijuana-related businesses is still intact.