JP Morgan Slapped With $1.6 Million Fine By Hong Kong Regulator
- The investment bank failed to properly perform due diligence and broke wire transfers rules.
A Hong Kong regulator announced last week that it is fining JP Morgan HKD 12.5 million ($1.6 million). According to the Hong Kong Monetary Authority (HKMA), the investment banking giant's local division broke anti-Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term laws over a two year period running from February of 2012 to April 2014.
“This case involved deficiencies across a number of key control areas including CDD, periodic reviews and wire transfers, stemming largely from ineffective procedures and resulting in multiple contraventions of specified provisions of [anti-money laundering Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term],” said Carmen Chu, Executive Director, HKMA. “A bank must have procedures that are effective for the purpose of carrying out its duties under [anti-money laundering regulations].”
This is the first time that JP Morgan’s Hong Kong division has been fined by the local regulator. That may have contributed to the severity of the fine meted out by the HKMA.
JP Morgan - Malicious or Simple Mistake?
As Chus’s comments imply, the investment banking firm broke a number of different anti-money laundering rules. In fairness to JP Morgan, some of these rules seem to have been extremely bureaucratic in nature, meaning that it doesn’t appear that there was a huge level of ill intent, if there was any at all, on the part of the company.
For instance, the problems with wire transfers were related to forms that had to be filled out. Yes, it’s possible that these forms were deliberately left unfilled but, as in most areas of homo sapien activity, the propensity for laziness and human error to cause problems shouldn’t be underestimated.
The same was true for a set of documents and data, pertaining to high-risk customers, that had to be updated regularly. Again, there is a chance that ill-intent that played some role in this but it seems just as plausible that someone forgot to fill in a few forms and follow some bureaucratic procedures.
A Hong Kong regulator announced last week that it is fining JP Morgan HKD 12.5 million ($1.6 million). According to the Hong Kong Monetary Authority (HKMA), the investment banking giant's local division broke anti-Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term laws over a two year period running from February of 2012 to April 2014.
“This case involved deficiencies across a number of key control areas including CDD, periodic reviews and wire transfers, stemming largely from ineffective procedures and resulting in multiple contraventions of specified provisions of [anti-money laundering Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term],” said Carmen Chu, Executive Director, HKMA. “A bank must have procedures that are effective for the purpose of carrying out its duties under [anti-money laundering regulations].”
This is the first time that JP Morgan’s Hong Kong division has been fined by the local regulator. That may have contributed to the severity of the fine meted out by the HKMA.
JP Morgan - Malicious or Simple Mistake?
As Chus’s comments imply, the investment banking firm broke a number of different anti-money laundering rules. In fairness to JP Morgan, some of these rules seem to have been extremely bureaucratic in nature, meaning that it doesn’t appear that there was a huge level of ill intent, if there was any at all, on the part of the company.
For instance, the problems with wire transfers were related to forms that had to be filled out. Yes, it’s possible that these forms were deliberately left unfilled but, as in most areas of homo sapien activity, the propensity for laziness and human error to cause problems shouldn’t be underestimated.
The same was true for a set of documents and data, pertaining to high-risk customers, that had to be updated regularly. Again, there is a chance that ill-intent that played some role in this but it seems just as plausible that someone forgot to fill in a few forms and follow some bureaucratic procedures.