JP Morgan has cut its correspondent banking relationship with Dubai’s largest bank, Emirates NBD, as part of a global review of its business, Reuters has reported, citing sources familiar with the matter. In a memo to staff last year, the US bank said it would scale back its relationships with foreign banks in order to comply with regulatory pressure to tighten risk controls. “JP Morgan is undertaking a global review of its banking relationships both on profitability and on compliance. In the Middle East they have cut many relationships, including with Emirates NBD,” a person with knowledge of the matter said. “It is not very surprising given the pressure they’ve been under from regulators. They are cutting any relationship that holds even a slight bit of risk,” said another Dubai-based banker.
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