Report: Regulators to issue order to JPMorgan
JPMorgan Chase & Co. is expected to hear soon from the Federal Reserve and other United States authorities about alleged lapses in complying with anti-money-laundering regulations, Reuters reported. The largest U.S. bank may have to fortify its systems for monitoring risk and transactions.
Regulators are on the cusp of issuing a cease-and-desist order to JPMorgan, according to the Reuters report, which was based on anonymous sources. Separate action against the company could come from the Financial Crimes Enforcement Network at the Department of the Treasury.
If banks detect suspicious transactions from customers linked to terrorism, drug trafficking or sanctioned nations, they are supposed to flag them. In 2011, JPMorgan paid $88.3 million to settle charges brought by the Treasury Department that it had been involved in illegal transactions dealing with Cuba and Iran.
The anticipated move against the bank would be part of a larger initiative by regulators to tighten up financial institutions' compliance efforts. Last year, HSBC Holdings Plc paid regulators in the United States $1.9 billion to settle charges in an anti-money laundering case, and Standard Chartered Plc paid $667 million in a similar case, according to Reuters.
- see the Reuters article