JPMorgan Chase & Co will pay more than $2 billion of penalties to settle charges by U.S. federal authorities that it failed to report suspicious activity involving Bernard Madoff's Ponzi scheme.
As part of the deal, JPMorgan is admitting it violated laws requiring it to monitor customer activity for money laundering during its two decade relationship with Madoff, authorities said on Tuesday.
The penalties resolve another government probe for the largest U.S. bank, which faces at least eight other government investigations covering everything from its hiring practices in China to whether it manipulated the Libor benchmark interest rate. In November, JPMorgan agreed to a $13 billion settlement with the U.S. government over the bank's mortgage bonds.
The deal includes a two-year deferred prosecution agreement and settles outstanding probes by multiple bank regulators into failures in JPMorgan's anti-money laundering policies. The bank also agreed to improve its controls.