Some big banks eyed in drug, terror money laundering
Source: New York Times/MSNBC
Federal and state authorities are investigating a handful of major American banks for failing to monitor cash transactions in and out of their branches, a lapse that may have enabled drug dealers and terrorists to launder tainted money, according to officials who spoke on the condition of anonymity.
These officials say they are beginning one of the most aggressive crackdowns on money-laundering in decades, intended to send a signal to the nations biggest banks that weak compliance is unacceptable.
Regulators, led by the Office of the Comptroller of the Currency, are close to taking action against JPMorgan Chase for insufficient safeguards, the officials said. The agency is also scrutinizing several other Wall Street giants, including Bank of America.
The comptrollers office could issue a cease-and-desist order to JPMorgan in coming months, an action that would force the bank to plug any gaps in oversight, according to several people knowledgeable about the matter. But the agency, which oversees the nations biggest banks, has not yet completed its case. JPMorgan is in the spotlight partly because federal authorities accused the bank last year of transferring money in violation of United States sanctions against Cuba and Iran.
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tanyev
(42,541 posts)Vidar
(18,335 posts)truth2power
(8,219 posts)starroute
(12,977 posts)When everything else seized up, money-laundering was the only remaining source of available cash -- and it saved it system. At least, so I've seen it claimed, and it's got a certain plausibility.
tawadi
(2,110 posts)The ultra wealthy in this country use offshore banks to hide their assets. The rest of us no longer have any money.
bemildred
(90,061 posts)Not handling drug money has to be pretty tricky these days.