Under U.S. Pressure, Three Banks Scale Back on Cash Letter Processing, Correspondent Services: Sources

By Brian Monroe

Facing mounting regulatory pressure in the past year, several multinational banks are weighing whether to scale back their cash letter processing and other services for some of their foreign counterparts, say compliance professionals. The banks-JPMorgan Chase, HSBC and Standard Chartered-have all been subject to U.S. regulatory enforcement actions faulting the institutions' oversight of correspondent accounts. In August, The Wall Street Journal reported that New York-based JPMorgan disclosed in a memorandum that it would no longer accept new correspondent clients and would review its correspondent unit. As part of a "top-to-bottom analysis of the risk exposure" from its correspondent clients, JPMorgan...