JPMorgan Chase & Co. (JPM) is expected to receive an order from regulators to bolster anti-money laundering systems and examine past transactions, the Wall Street Journal reported, citing people familiar with the matter.
The Office of the Comptroller of the Currency will give the cease-and-desist order amid a wider crackdown on the nation’s largest banks, the people said, according to the newspaper. A spokeswoman for JPMorgan in Hong Kong declined to comment.
Authorities and lawmakers in the U.S. have been increasing scrutiny of banks’ money-laundering controls. HSBC Holdings Plc (HSBA) said this month that it’s likely to face criminal charges and the cost of a settlement may “significantly” exceed the $1.5 billion the London-based bank has set aside. U.K. rivalStandard Chartered Plc (STAN) paid $340 million in August to settle a New York regulator’s claim it broke Iranian sanctions rules.
The comptroller last week told banks including New York- based JPMorgan to expect more enforcement actions and fines for possible violations of money-laundering procedures, the Journal said, citing banking industry officials it didn’t identify.
The OCC in April ordered Citigroup Inc. (C) to improve compliance with the Bank Secrecy Act requiring safeguards against money laundering. Deficiencies prevented New York-based Citigroup from identifying risky customers and monitoring client relationships, the regulator said at the time.
Bloomberg
