This is correct. They are also not singling out Bitcoins either. It has been in the news recently with banks closing accounts of money transfer businesses [1] due to the risk of money laundering. Therefore if money transfer businesses dealing with "conventional" currency are too much of a risk it is no surprise they'd not allow a company dealing in Bitcoins to hold an account.

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[1] http://www.theguardian.com/global-development/2013/jun/24/so...