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JP Morgan accused of breaching money-laundering regulations

First Published 22nd December 2017

Swiss branch involved in fraud scandal around 1Malaysia Development Berhad

Switzerland's Financial Regulator, FINMA, is filing an investigation against JP Morgan's Swiss unit for extensive dealing with Malaysian state investment fund 1Malaysia Development Berhad (1MDB).

1MDB is being investigated by the United States, Switzerland and other countries because billions of dollars have been drawn out of the fund.

"JP Morgan failed to adequately identify the increased money laundering risks in some of the business relationships related to this case", FINMA states based on enforcement proceedings that have been conducted between May 2016 and June 2017.

The financial regulator adds: "In one case, [JP Morgan] credited hundreds of millions of US dollars from the 1MDB sovereign-wealth fund, allegedly earmarked for the purchase of a company, to the personal account of an individual with close ties to a 1MDB business partner".

Despite the accusations, JP Morgan has not been fined, nor were any restrictions imposed as a result of the bank's "good cooperation" as reported by FINMA.