JPMorgan Chase

Banking, Financial Services

[email protected]


"U.S. regulators are expected to order JPMorgan Chase & Co to correct lapses in how it polices suspect money  flows, two people familiar with the situation said, in the latest move by officials to force banks to tighten their anti money-laundering systems. The action against JPMorgan, which is expected as soon as Friday, would be in the form of a cease-and-desist order, which regulators use to force banks to improve compliance weaknesses, the sources said. JPMorgan will probably not have to pay a monetary penalty, one of the sources said... A JPMorgan spokeswoman declined to comment... The inquiry on JPMorgan, the biggest U.S. bank, dates back several months, the sources said. The first public signs that JPMorgan had issues with its transaction monitoring systems emerged in August 2011. At that time JPMorgan agreed to pay $88.3 million to settle Treasury Department allegations that it engaged in prohibited transactions linked to Cuba and Iran. A source familiar with the expected order said JPMorgan did not adequately fix dozens of anti-money laundering issues cited previously by regulators, forcing them to take formal action. Under the order, JPMorgan is expected to be required to bolster systems it uses to monitor risk and transactions, the sources said." (Reuters, "Exclusive: JPMorgan faces action on laundering controls," 1/11/13)


"This license was so heavily redacted by OFAC at the request of JPMorgan Chase that it is impossible to say exactly what was authorized other than the fact that it involved a letter of credit that somehow ran afoul of the sanctions against Iran." (New York Times, "Licenses Granted to U.S. Companies Run the Gamut," 12/24/10)