Banks Cut Back on Trading With Embassies: Report - ABC News: "U.S. banks are cutting back their dealings with embassies and other foreign institutions in the United States because of the difficulty of complying with money-laundering rules, the Wall Street Journal reported.
Banks have been under pressure to comply with money laundering rules implemented after the September 11 attacks that require them to track the source and purpose of transactions, according to the newspaper.
The U.S. State Department told the Journal that the banks' actions have affected about 40 countries, of which 16 are African.
JPMorgan Chase & Co told ambassadors in letters dated September 30 that it is closing its division serving diplomatic and foreign government entities, the newspaper reported.
Citigroup Inc is also considering cutting some business with embassies, and Bank of America Corp and HSBC Holdings have already done this, the Wall Street Journal reported."
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