Learning from the mistakes of JP Morgan Chase

By November 28, 2017AML

Today we want to highlight the recent fines and settlements in cases involving JP Morgan Chase.  In the last six months, one of the largest financial organizations in the world has been hit with not one, but TWO record fines. totaling some $15 billion!  Let’s take a look at the fines themselves and what the Attorney General has to say about it.

The first fine of $13 billion was the result of a settlement with the U.S. Justice Department for JP Morgan Chase’s role in how they marketed mortgage backed securities.  Right on the heels of that fine, JP Morgan was handed down an additional $2 billion deferred prosecution agreement for it’s lack of oversight in the Madoff scandal.  What is unique about the second fine is the Department of Justice’s use of a deferred prosecution agreement.  This agreement means the Justice Department will not criminally charge JP Morgan for a period of two years, allowing it time to reform it’s policies and practices.  JP Morgan also agrees to cooperate fully with the Justice Department’s ongoing investigation into Madoff’s operations and to improve its compliance and anti-money laundering policies.

In an interview with MSNBC, Attorney General Eric Holder stated, “There are no institutions that are too big to indict. There are no individuals who are in such high level positions that they cannot be indicted, criminally investigated,” he said.  This serves as a strict warning to other firms that if the Justice Department will go after the largest bank in the U.S., they can go after anyone.

We share this information today as a reminder of the utmost importance for all firms to be in compliance.  The professionals at Cobia Compliance would welcome the opportunity to partner with your firm and ensure your firm’s compliance is in order.  Contact us today for a consultation!

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