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JP MORGAN FACING IN-DEPTH REVIEW OF MONEY LAUNDERING SYSTEMS AFTER SWISS FAILINGS

2 January 2018

Switzerland’s financial regulator FINMA is to conduct an in-depth review of JP Morgan’s Swiss unit's anti-money laundering systems.

This follows last year’s finding by the regulatory body that the banking giant broke anti-money laundering regulations in its dealings with the Malaysian sovereign wealth fund, 1MDB. FINMA discovered serious shortcomings in the company's monitoring and control systems in relation to its dealings with the allegedly corrupt fund between 2009 and 2011.

FINMA said, "The bank seriously breached anti-money laundering regulations by failing to screen adequately transactions and business relationships, booked in Switzerland, associated with the Malaysian sovereign wealth fund 1MDB and one of its business partners.

"Given the inadequacy of the bank's controls and the serious breaches which have been identified in this case, FINMA will conduct an in-depth review of the bank's anti-money laundering systems."

JP Morgan has accepted that it had taken incomplete or inconsistent information from its clients without examining the content further or documenting it.

It must now examine how and why such a major banking institution failed in its duty to prevent money laundering. There can be little or no excuse, in this day and age, for financial institutions not being aware of - or compliant with - their obligations to prevent and report suspicions of money laundering.

Read our article: MAKING SURE YOU DO ENOUGH TO PREVENT MONEY LAUNDERING


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