Banks Exit From Embassy Business : Moves By Largest Lenders Could Strain Relations Between U.S. Government and Other Countries

The Wall Street Journal reports:

Some of the nation's largest banks are exiting or scaling back their dealings with foreign embassies and missions in the U.S. because of the burden of complying with money-laundering regulations.

The moves could strain U.S. foreign relations. The State Department said that about 40 countries have been affected, 16 of which are African nations. The department next week will host a briefing by banking regulators for the heads of embassies and missions affected. A spokesman said the department is fully engaged in the issue, seeking a solution to what it sees as a problem that could have implications for U.S. diplomacy and security.