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In Pot-Friendly Colorado, a High Demand for Banking Services

Dec. 22, 2015, 5:00 AM

Elliott Klug had little choice two years ago other than to pay the $30,000 state sales tax bill for his Colorado medical marijuana dispensary business in cash, mostly in $20 bills.

With few banks willing to give him a checking account, Klug drove to the Colorado Department of Revenue office in his pink-wrapped Honda Element with tightly bound stacks of cash stuffed into manila envelopes on the passenger seat—along with a handgun.

Klug considers himself lucky to have finally found a steady, but limited, bank account for his business, Pink House Blooms, which allows him to pay rent by check ...