U.S. regulators are expected to order JPMorgan Chase & Co to correct lapses in how it polices suspect money flows, two people familiar with the situation said, in the latest move by officials to force banks to tighten their anti money-laundering systems.
The action against JPMorgan would be in the form of a cease-and-desist order, which regulators use to force banks to improve compliance weaknesses, the sources said. JPMorgan will probably not have to pay a monetary penalty, one of the sources said.
The Office of the Comptroller of the Currency and the Federal Reserve are expected to issue a cease-and-desist order, the sources said. The Treasury Department’s anti money-laundering unit, the Financial Crimes Enforcement Network, also could take a separate action against the bank, they said.
The status of the inquiry could change, and the timing of the action could extend to next week or later.
A JPMorgan spokeswoman declined to comment.
U.S. regulators have been cracking down
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