JPMorgan Chase will pay $1.7 billion dollars as part of a deferred prosecution agreement reached with the U.S. Attorney’s office for the Southern District of New York on charges its failure to maintain an effective anti-money laundering program facilitated the multibillion-dollar Ponzi Scheme orchestrated by infamous New York broker Bernard Madoff.
The monetary settlement, announced on Tuesday, is the largest ever bank forfeiture by the Department of Justice for a Bank Secrecy Act violation. It will be distributed to victims of the fraud at Bernard L. Madoff Investment Securities, and its predecessor Bernard L. Madoff Investment Securities. The bank is prohibited from taking any tax deduction or tax credit for the payment to U.S. Treasury.
