While Cyprus Looks for Financial Lifeline, Some Banks Consider a Way Out

By Brian Monroe and Colby Adams

As Cyprus continues its troubled efforts to fund its government, several international banks are looking at something all together different: a quiet exit from its ties to the island nation. Concerned both about the economic stability of Cyprus and signs that its financial institutions could be conduits for dirty money, several North American banks have begun a review of their correspondent relationships in the Mediterranean country, sources from three of the multinational businesses confirmed. At least one of the banks has decided to exit several correspondent relationships in recent months, citing concerns that U.S. regulators were becoming increasingly interested in...