As many as 30 credit unions in West Virginia and Ohio have shifted more business to their corporates after a regional and national bank terminated their correspondent account relationships last month.
The $1.4 billion Volunteer Corporate CU and the $3.7 billion Corporate One FCU both reported the closed accounts, and in both cases said members reported the banks cited Bank Secrecy Act and money laundering risk for the decision.
Charlie Thomas, VolCorp's senior vice president of West Virginia operations, said the Nashville, Tenn.-based corporate first became aware of the terminated correspondent relationships a few weeks ago. He said the two banks were the Columbus, Ohio-based Huntington Bank and New York-based JPMorgan Chase Bank.
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