JPMorgan admits BSA violations

FinCEN has distributed a news release announcing that it has fined JPMorgan Chase Bank, N.A., $461 million for willfully violating the Bank Secrecy Act (BSA) by failing to report suspicious transactions arising out of Bernard L. Madoff's decades-long, multi-billion dollar fraudulent investment scheme. "In consenting to the assessment of a civil money penalty, JPMorgan admitted to the facts set forth by FinCEN and that its conduct violated the Bank Secrecy Act," said the release. FinCEN said that the bank attempted to protect itself when it became suspicious of Madoff's fraud, but failed to file required Suspicious Activity Reports with FinCEN which might have "saved thousands of other fraud victims untold misery and loss." FinCEN's notice stated that the OCC will collect a $350 million payment under a Civil Money Penalty Order against JPMorgan Chase Bank, N.A., JPMorgan Bank and Trust Company, N.A., and Chase Bank USA, NA. The U.S. Attorney's Office for the Southern District of New York (SDNY) has approved a deferred prosecution agreement under which JPMorgan will forfeit $1.7 billion (which will be contributed to the recovery funds for Madoff victims). FinCEN agreed to consider its penalty satisfied by JPMorgan's payment to the SDNY. The combined payments agreed to by the JPMorgan banks total $2.05 billion.

• FinCEN CMP Order
• Press release by U.S. Attorney's Office for Southern District of New York
• Supporting documents for Deferred Prosecution Agreement
• OCC press release
• OCC CMP Order