If J.P. Morgan Chase & Co. customers were delighted with their FI’s announcement in February of a new $1,000 ATM withdrawal limit, some noncustomers must have been practically delirious.
While still in the process of upgrading its ATMs to dispense $50 and $100 bills, Chase began to see some very large ATM transactions by customers of other banks, according to a report by Wall Street Journal.
Withdrawals of as much as $20,000 at a time were made by customers of banks in nations such as Russia and Ukraine, sparking concerns about potential money laundering.
A Chase spokesperson told WSJ that the withdrawals checked out as legitimate. However, the FI decided to take the precautionary step of limiting cash withdrawals to a total of $1,000 per card per day for noncustomers. (Customer accounts are not affected by the new rule.)
It’s an unusual move in that U.S. banks have traditionally allowed the cardholder’s FI to set customer withdrawal limits at off-us ATMs. However, the report said, more large U.S. banks are beginning to impose limits on noncustomer accounts due to money-laundering concerns.
According to FinCen, most countries have rules in place requiring banks to report cash withdrawals over a set amount. In the U.S., the reporting threshold is $10,000.