JPMorgan drops ties with Al-Rajhi Bank

February 20, 2014 12:51 am

JPMorgan Chase & Co (JPM) has dropped the world’s largest Shari’ah-compliant lender, Al-Rajhi Bank, as a correspondent banking client amid a push to improve risk controls, Bloomberg has reported, citing two people with direct knowledge of the move. The relationship with Saudi Arabia’s biggest publicly traded bank ended December 31, because JPMorgan couldn’t get enough information on where payments in dollar-clearing services for Al-Rajhi had originated, said one of the people. JPMorgan said it cut off the service to about 500 foreign lenders last year as regulators press the world’s biggest banks to verify that transactions are used for legitimate business.