Swiss Person To Keep JPMorgan From Getting Too Swiss Again

How bad was the bank’s little Alpine money-laundering problem? 1MDB bad.
Deborah Cordwell [CC BY 3.0], via Wikimedia Commons

This guy'll do. Deborah Cordwell [CC BY 3.0], via Wikimedia Commons

Last month, we learned that JPMorgan Chase had managed the near-impossible and run afoul of Swiss banking laws, specifically Switzerland’s not-historically-robust anti-money-laundering rules. How bad was Dimon & co.’s transgression? The Swiss were initially awfully Swiss about things, simply letting the bank know it had “seriously infringed” upon their financial hospitality.

Yesterday, that prognosis was upgraded to “seriously breached.” So seriously that a traditional slap on the wrist will not do. No: The Swiss are gonna get all American up in here and install a monitor to make sure it doesn’t happen again, “it” being the gentle washing of “hundreds of millions of dollars” on behalf of the prime minister of Malaysia, who was in the process of allegedly draining that country’s sovereign wealth fund, 1MDB, of several billion dollars.

According to Finma, JPMorgan’s Swiss unit helped several individuals tap into the fund, transferring “hundreds of millions of dollars” that were meant to be used for 1MDB’s purchase of a company to the personal account of someone tied to a 1MDB business partner. The bank then sent some of the money to another company associated with that person.

“The bank questioned neither the economic purpose of the transactions, the procedure involved, nor the substantial amount that remained in the personal account,” Finma said.

JPMorgan ‘Seriously Breached’ Money-Laundering Rules, Swiss Regulator Says [NYT]


Rep. Blaine Luetkemeyer opening his early Valentine's Day cards from bank lobbyists. (Rep. Blaine Luetkemeyer)

Banks Ask Congress To In-Source Money Laundering So They Don’t Have To

First on the G.O.P.’s banking agenda in 2018: Making sure banks don’t have to spend their tax savings figuring out who the bad guys are.

Appropriate money-laundering site. Saif Gill [CC BY 3.0], via Wikimedia Commons

If Pakistan’s Largest Bank Wants To Launder Money, It’ll Have To Do So In The Bahamas Or Delaware

New York will not help finance terrorist attacks against itself for more than a couple of years without doing something about it.


Disappointed Regulator Outsources More Of Deutsche Bank’s Anti-Money Laundering To KPMG

It’s almost as if five years of stern warnings and meaningful shakes of the head haven’t gotten through yet.


Citi Mexico Unit Has Final Bout Of Montezuma’s Revenge

Banamex USA’s final gift to Mike Corbat is a $97.4 million bill from Jeff Sessions.