Bank Chaos And Confusion: JPMorgan Chase and Citibank Are Abruptly Terminating Accounts!
It’s been just reported that there’s massive chaos and confusion among bank customers. JPMorgan Chase and Citibank decided to abruptly terminate some accounts. Check out the latest reports about the matter below. Banks b...
It’s been just reported that there’s massive chaos and confusion among bank customers. JPMorgan Chase and Citibank decided to abruptly terminate some accounts. Check out the latest reports about the matter below.
Banks bring chaos among customersA recent report has accused JPMorgan Chase, Citibank, and the US banking system in general of engaging in a systemic “exiting” process that abandons loyal customers.
Nearly 200 former Chase customers have filed complaints with the New York Times, claiming that their accounts were wrongfully terminated, causing financial chaos and confusion.
The account terminations are linked to a broad bureaucratic security process designed to prevent criminal activities such as fraud, terrorism, money laundering, and human trafficking.
However, the closures are also causing financial distress to honest people and businesses, as banks often take weeks to send account balances after termination.
It seems like the number of sudden account closures is increasing, but banks are not obliged to disclose information about how frequently they shut down accounts or how many mistakes they make.
According to JPMorgan Chase spokesperson Jerry Dubrowski, the bank is abiding by the law and most of the account closures that are related to “de-risking” are reasonable.
“We act in accordance with our compliance program, consistent with our regulatory obligations. We know that can be frustrating to clients, but we must follow those obligations…
The vast majority of closures are correct, consistent with the regulatory obligations we are required to follow.”
JPMorgan has been accused of discriminating against customers based on their religious or political beliefs.
Attorneys general from 19 states wrote a letter to the bank’s CEO Jamie Dimon in May, alleging that the bank violated its own policies on equality by closing accounts.
Citibank is also mentioned in the article. An interview with a former customer, Caroline Potter, reveals that her account was abruptly closed by Citibank without explanation.
Potter suspects that the account was closed because her husband’s company was acquired by a cannabis industry organization.
However, Citibank has not provided her with any explanation to this day. Potter describes a secretive department within the bank that nobody outside of it seemed to know about.
Citibank has declined to comment on the case. According to a comprehensive report by Reuters, banks have been increasingly submitting suspicious activity reports (SARs) to the government.
The number of submissions has risen from 2.5 million in 2020 to 3.0 million in 2021, and further increased to 3.6 million in 2022. It is not mandatory for banks to inform their customers about the filing of SARs.
The Banking Policy Institute states that only 4% of SARs reported to law enforcement by banks lead to follow-ups, and a very small fraction of the follow-ups result in arrests and convictions.
Stay tuned for more reports about this concerning matter.
Original source
Read on CryptoGazetteRelated market context
Japan’s SBI is using XRP to solve a banking problem
SBI Shinsei Bank is reportedly offering crypto deposit rewards to customers, with vouchers worth 20% of their interest payments re...
Coinbase launches AI agent accounts that can trade and spend on your behalf
"Coinbase for Agents" is a new platform that lets AI assistants like ChatGPT and Claude connect to users’ Coinbase accounts to tra...
‘Anarchistic neobanks’ are bitcoin’s next frontier, says Blockrise CEO
Blockrise CEO Jos Lazet sees bitcoin-native institutions evolving into alternatives to banks, in an interview at BTC Prague.
Federal Reserve’s quarterly financial accounts report still has a crypto-sized blind spot
The exclusion of crypto from the Fed's report highlights the ongoing disconnect between traditional finance and emerging digital a...
Coinbase launches AI agent accounts for automated trading and spending
Coinbase's AI agent accounts could revolutionize finance by enabling autonomous transactions, but they may also heighten market vo...
Federal Reserve’s latest financial accounts still pretend crypto doesn’t exist
The Fed's omission of crypto in its financial accounts may hinder comprehensive economic analysis and adaptation to evolving asset...