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http://www.businessweek.com/news/2012-11-16/jpmorgan-faces-order-on-anti-money-laundering-systems-wsj-says

Bloomberg News

JPMorgan Faces Order on Anti-Money Laundering, WSJ Says

November 16, 2012

JPMorgan Faces Order on Anti-Money Laundering Systems, WSJ Says

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. Photographer: Peter Foley/Bloomberg

JPMorgan Chase & Co. (JPM:US) 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. JPMorgan spokeswoman Kate Haywood in London declined to comment, as did a spokeswoman in Hong Kong.

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. rival Standard 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.

JPMorgan fell (JPM:US) 1 percent to $39 by 11:21 a.m. in Germany from $39.39 at the close of trading on the New York Stock Exchange yesterday.

The OCC in April ordered Citigroup Inc. (C:US) 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.

To contact the reporter on this story: Russell Ward in Tokyo at rward16@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net


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