JPMorgan Chase is reportedly closing the accounts of current and former foreign government officials, as part of its plan to avoid penalties for anti-money laundering violations.
JPMorgan was quoted by the Financial Times as saying that it was closing the Chase accounts and stopping the credit cards of all current and former non-US senior government officials due to rising compliance costs.
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As per the new regulations, banks are obliged to subject the accounts of such "politically exposed persons" to added scrutiny.
"This decision is not a reflection on how these customers have handled their accounts, but rather a result of our focus on internal controls – our number one priority right now," the bank told the publication.
The bank’s clampdown, which affects approximately 3,500 account holders, has provoked the former Colombia finance minister Jose Antonio Ocampo to file a complaint against the lender with the US Consumer Financial Protection Bureau, the news agency reported.
In its complaint, Ocampo accused the lender for its discriminating practises, as the bank is only closing the accounts of non-Americans.
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