JPMorgan Chase & Co. (JPM) is reviewing its correspondent banking unit and not taking on new business from foreign lenders after regulators identified deficiencies in its anti-money-laundering procedures.
The bank said in a memo last week that its treasury services unit won’t take on new correspondent clients or new business from existing customers who use the bank to process transactions, according to Brian Marchiony, a spokesman. The halt allows JPMorgan to review its existing relationships, he said. The Wall Street Journal reported the memo earlier today.
“Serving financial institutions in correspondent banking has been, and will continue to be, a core strength of ours,” Marchiony said in an e-mailed statement. “It’s important for us to pause and assess our business, particularly in select markets, to ensure we are well-positioned to meet our responsibilities for the long-term.”