JPMorgan Said to Face Order to Tighten Money-Laundering Controls

Bear Stearns / JPMorgan Maddison Avenue

JPMorgan Chase will become the latest big bank ordered by U.S. regulators to clean up its safeguards against money laundering, said a person briefed on the situation.

Bloomberg reports that banking regulators including the Office of the Comptroller of the Currency will soon order the largest U.S. bank to fix compliance flaws in its Bank Secrecy Act responsibilities, said the person, who declined to be identified because the talks aren’t public. The order doesn’t include monetary penalties and is similar to one issued to Citigroup in April, the person said.

After the 2008 credit crisis companies reduced compliance staff tasked with guarding the financial system against the flow of illicit money, banking regulators said. HSBC Holdings Plc (HSBA), Europe’s largest bank, agreed last month to pay $1.9bn to settle a money-laundering probe by the U.S. Department of Justice and banking regulators in the U.S. and U.K. Another London-based bank, Standard Chartered, was fined a total of $667m by U.S. regulators last year for facilitating transactions with Iran in violation of sanctions.

Hit the link below to access the complete Bloomberg article:

JPMorgan Said to Face Order to Tighten Money-Laundering Controls

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