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The Morning Risk Report: JPMorgan Chase Settles Allegations It Violated U.S. Sanctions |
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JPMorgan Chase’s settlement relates to transactions made between January 2008 and February 2012. PHOTO: CHRISTOPHER DILTS/BLOOMBERG NEWS
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Good day. JPMorgan Chase Bank NA agreed to pay $5.3 million to settle allegations it violated various U.S. sanctions programs, Risk & Compliance Journal's Samuel Rubenfeld reports. The bank was hit with two penalties, one monetary and the other a finding of violation. Both, the U.S. Treasury Department said, were connected to failures in its screening processes.
The settlement relates to 87 net-settlement transactions between January 2008 and February 2012 totaling more than $1 billion, of which about $1.5 million, or just 0.14%, appears to be linked to parties under sanctions. Each of the transactions involved a U.S.-based JPMorgan Chase client and a foreign entity with connections to eight airlines that were, at various times, subject to U.S. sanctions, the Treasury said.
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Before January 2012, JPMorgan didn’t appear to have had a process to evaluate members independently of the foreign entity despite receiving red-flag notifications on at least three occasions. “The bank failed to screen…for purposes of [sanctions] compliance, despite being in possession of the necessary information to enable screening,” the Treasury said.
Since then, the bank has screened all net-settlement participants until it terminated its relationship with the American client. “We have since upgraded our systems and made substantial enhancements to our sanctions compliance program,” JP Morgan Chase spokesman Brian Marchiony said.
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U.S. Sanctions Hit Iran’s Plan to Tap Giant Gas Trove |
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U.N. Warns Drastic Action Needed to Stave Off Climate Change |
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A failure by countries to meet voluntary targets to limit global warming to "well below" two degrees Celsius would be devastating for some ecosystems and raise sea levels to flood many major cities and some countries, among other risks, according to a United Nations report.
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Amazon Says Third-Party Seller Got Customer Email Addresses |
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Amazon.com Inc. notified some customers that their email addresses were shared with an outside seller on its platform in violation of the company’s policy.
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Airbus Set to Name New Chief Executive |
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Airbus SE is set to name the head of the plane-making unit, Guillaume Faury, as its next chief executive, people familiar with the matter said. Mr. Faury is set to replace Tom Enders, who has said he wouldn’t seek a new mandate when his current term expires next year.
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Daimler Extends Management Reshuffle |
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Daimler AG’s long-serving Chief Financial Officer Bodo Uebber said he wouldn’t seek an extension of his contract when it expires next year, marking a new step in the management reshuffle at the German car maker.
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HSBC Taps Goldman Banker as Financial Institutions
Chief |
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HSBC Holdings PLC hired Goldman Sachs Group Inc. banker Peter Enns as the global head of its financial institutions group six weeks after a group complained to the bank’s board about a struggle to attract talent.
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Western Union Makes Digital Push Amid Fierce Competition |
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Pentagon to Audit Defense Supply Chains |
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The Pentagon plans to scrutinize the supply chains of U.S. aerospace and defense companies to find gaps and weaknesses in the nation’s military readiness.
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