Switzerland’s financial regulator will conduct a detailed review of JPMorgan Chase & Co.’s anti-money laundering controls after finding the bank seriously breached regulations in its dealings with Malaysian sovereign wealth fund 1MDB.
Bloomberg News reports that the regulator, which undertook enforcement proceedings between May 2016 and June 2017, uncovered “serious shortcomings" in connection with relationships and transactions associated with 1MDB, though stopped short of fining the U.S. bank, the Swiss organization known as Finma said in a statement Thursday.
Regulators and prosecutors in the U.S., Singapore and other jurisdictions have investigated how banks were used to funnel money from alleged corruption at 1Malaysia Development Bhd., which has denied wrongdoing. Switzerland in February fined Coutts & Co. Ltd. for violating money-laundering rules and illegally profiting from transactions associated with 1MDB, while Singapore’s central bank in May imposed financial penalties amounting to S$1.6 million ($1.2 million) on Credit Suisse and United Overseas Bank.
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