Compliance
Compliance Corner: JP Morgan

The latest compliance issues in wealth management around the world.
JP Morgan has
agreed to pay $5.3 million to settle claims that it broke US
sanctions programmes.
The US bank was penalised twice, with a monetary punishment and a
finding of a violation. Both issues were connected to failures by
JP Morgan’s screening processes. A report by Reuters said that
the bank paid the money to settle allegations that it had
violated Cuban Assets Control Regulations, Iranian sanctions and
Weapons of Mass Destruction sanctions 87 times. A spokesperson
confrmed the report to this publication.
The Wall Street Journal quoted a spokesperson for the
bank saying that JP Morgan had voluntarily disclosed the matter
more than six years ago.
The settlement relates to net-settlement transactions between
January 2008 and February 2012 totaling more than $1 billion, of
which about $1.5 million, or just 0.14 per cent, appears to be
linked to parties under sanctions.
Each of the 87 transactions involved a US-based JP Morgan client
and a foreign entity with connections to eight airlines that
were, at various times, subject to US sanctions, the Treasury was
quoted as saying. The Treasury did not identify the US client or
the foreign entity.