Sources familiar with the matter were quoted by The Wall Street Journal as saying that the bank will neither accept new clients nor execute new business with offshore correspondent lenders for which it processes transactions and clears dollar payments.
Due to the intensified regulatory scrutiny, the lender is carrying out an internal review, and it is most likely that the lender will curb its business relationship with some overseas banks.
A spokesman of the bank was quoted by the news agency as saying, "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."
The news agency reported citing a memo sent by the bank to its staff that it will carry out an internal assessment of the relationships with the foreign banks, although it has no plans to quit foreign correspondent banking.
"Serving other financial institutions in correspondent banking has been, and will continue to be, a core strength of ours," the spokesman said.
In January 2013, the bank agreed with the Office of the Comptroller of the Currency to boost its system and controls to check money laundering as well as comply with other financial regulatory requirements.
