Company News

DoJ probing AmEx's foreign exchange international payments unit

An American Express credit card is seen on a computer keyboard in this picture illustration taken September 6, 2017. REUTERS/Philippe Wojazer/Illustration

(Reuters) - American Express Co AXP.N has received subpoenas from the U.S. Department of Justice and inquiries from other federal agencies related to its foreign exchange international payments business, the credit card issuer said on Tuesday.

The subpoenas were received from both the civil and criminal divisions of the Department of Justice, while the inquiries came from the Federal Reserve, the Federal Deposit Insurance Corporation and other agencies, the company said in a regulatory filing.

AmEx’s foreign exchange international payments (FXIP) unit offers cross-border payments services mainly to small and middle market business customers in five countries, including the United States.

Pricing practices within AmEx’s FXIP unit were being probed by the Federal Bureau of Investigation, the Wall Street Journal reported last month.

AmEx said in Tuesday’s filing it was reviewing FXIP’s pricing practices with an outside law firm.

FXIP accounts for less than 1 percent of AmEx’s total revenue, and the investigation will not have a serious impact on overall operations or results, the company said.

Reporting by Diptendu Lahiri in Bengaluru; Editing by Sai Sachin Ravikumar