JPMorgan Chase Bank, National Association

MAS civil penalty for failing to prevent or detect relationship managers' misconduct in OTC bond pricing disclosures

MAS imposed a civil penalty of S$2.4 million on JPMorgan Chase Bank, N.A. for failing to prevent or detect misconduct by relationship managers who made inaccurate or incomplete disclosures in 24 OTC bond transactions between November 2018 and September 2019, charging spreads above agreed rates. JPM admitted liability under section 236C of the SFA, paid the penalty, refunded overcharged fees and strengthened pricing controls; reviews of the individual RMs were ongoing.

The bank has refunded the overcharged fees to affected clients.

Refund of overcharged fees to affected clients; strengthened pricing frameworks and internal controls.

Enforcement action: inadequate trade surveillance for market abuse, 2014 to 2023

The Federal Reserve fined JPMorgan Chase & Co. about USD 98.2 million for weak surveillance of firm and client trading for market abuse between 2014 and 2023 and required a review and corrective action. The Fed said combined penalties with the OCC total about USD 348.2 million, implying an OCC penalty of about USD 250 million against the bank. The Fed component is against the holding company, not the bank.

The Federal Reserve Board on Thursday issued an enforcement action against JPMorgan Chase & Co.

Deferred prosecution agreement: wire fraud schemes in precious metals and US Treasuries futures (spoofing)

JPMorgan Chase & Co. and its subsidiaries JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC entered a three-party DPA on two counts of wire fraud for spoofing schemes in precious metals futures (about 2008 to 2016) and US Treasuries (about 2008 to 2016), paying over USD 920 million in criminal penalty, disgorgement and victim compensation. The the US Department of Justice credits payments under the separate CFTC (about USD 436 million civil penalty) and SEC (USD 35 million, against JPMS) settlements; the CFTC and SEC amounts are components of, not additions to, the USD 920 million. The the US Department of Justice release names three parties to the deferred prosecution agreement: JPMorgan Chase & Co., JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC. The USD 920 million is the total paid under the agreement by the group, not a sum imposed on the bank alone.

JPMorgan Chase & Co. (JPMorgan), a New York, New York-based global banking and financial services firm,

Agreed to cooperate in future investigations and to report certain suspected violations.

Reprimand, HK$12,500,000 pecuniary penalty and independent review order for AMLO contraventions (customer due diligence, periodic reviews, wire transfer originator information), April 2012 to February 2014

The Monetary Authority found the branch contravened six AMLO provisions: CDD procedures that did not require beneficial owner verification, business relationships established before checks were complete, 259 of 495 high-risk customers in related groups not reviewed annually, and some outgoing wire transfers sent without originator names. It reprimanded the branch, ordered a HK$12,500,000 penalty and required an independent external advisor's report on remediation. The branch had self-identified some deficiencies.

has ordered JPMorgan Hong Kong to pay a pecuniary penalty of HK$12,500,000

Extensive remedial work and strengthened control functions; independent external advisor report ordered (wire transfer deficiencies excluded from the order's scope).

Reprimand and HK$2.6 million fine for offering offshore listed index options without the required Type 2 and/or Type 5 registration (2003 to 2015) and late reporting

The SFC reprimanded JPMorgan Chase Bank, National Association and J.P. Morgan Securities (Asia Pacific) Limited for a combined HK$5.6 million. The bank's share, HK$2.6 million, related to offering certain offshore listed index options to clients from 1 April 2003 to 22 July 2015 without the required registrations and to reporting the breach about five months after discovery. The bank stopped offering the products.

SFC reprimands and fines two JP Morgan entities HK$5.6 million for regulatory breaches

JPMCB stopped offering the offshore listed index options; group position reporting system fixed.

Final notice: failings in G10 spot FX trading controls (five-bank settlement)

In the November 2014 five-bank FX settlement the FCA fined JPMorgan Chase Bank N.A. GBP 222,166,000 (USD 352 million) for failing to control business practices on its London G10 spot FX voice trading desk between 1 January 2008 and 15 October 2013, after a 30% settlement discount. The FCA release notes parallel CFTC penalties and an OCC penalty of USD 700 million across Citibank and JPMorgan; those are separate and must not be added to the FCA figure.

JPMorgan Chase Bank N.A. £222,166,000 ($352 million), The Royal Bank of Scotland Plc £217,000,000 ($344 million)