FinCEN Fines JPMorgan $461 Million for BSA Violations
In a January 7, 2014, news release, the Financial Crimes Enforcement Network (FinCEN) announced that they have fined J.P.Morgan Chase Bank, N.A. (JPMorgan) $461 million for violating the Bank Secrecy Act (BSA).
The violations are for failing to file suspicious activity reports (SARs) related to Bernard Madoff’s fraudulent investment scheme. According to FinCEN, JPMorgan focused on its investment exposure when it learned of Madoff’s scheme, instead of focusing on the bank’s anti-money laundering responsibilities.
JPMorgan identified several red flags indicating fraud back in 2007 but did not file a SAR with FinCEN until after Madoff’s arrest in December 2008.
CLA’s financial institution regulatory compliance team assists banks and credit unions nationwide in establishing regulatory compliance programs, conducting compliance testing, and training staff on regulations. Justin Robinson is a member of CLA’s regulatory compliance team and can be reached at justin.robinson@CLAconnect.com.
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