The Office of the Comptroller of the Currency announced on 14 March 2024 that it had assessed a $250 million civil money penalty against JPMorgan Chase Bank, N.A. and issued a formal cease and desist order following a finding that the bank had operated with significant deficiencies in its trade surveillance programme over a period spanning from 2014 to 2023. The OCC stated in its news release, designated News Release 2024-25, that the penalty had been paid to the US Department of the Treasury. The deficiencies covered nearly a decade of trading activity.
According to the OCC's findings, JPMorgan Chase failed to surveil billions of trading instances across at least 30 global trading venues during the period covered by the order.
CEASE AND DESIST ORDER SETS REMEDIATION TERMS
The cease and desist order issued alongside the financial penalty sets out specific requirements that JPMorgan Chase must satisfy before it can proceed with onboarding new trading venues. The bank is required to seek the OCC's non-objection before adding any new venue to its trading infrastructure. The OCC also required the bank to obtain an independent third party to conduct an assessment of its trade surveillance programme.
FEDERAL RESERVE ACTION BRINGS COMBINED PENALTY TO $348.2 MILLION
The OCC action was coordinated with the Federal Reserve, which issued a separate but related enforcement action against JPMorgan Chase & Co., the bank holding company, on the same date. The two penalties together total $348.2 million.
JPMorgan Chase is the largest bank in the United States by assets. Under the OCC's order, the bank must complete the remediation work needed to bring its surveillance capabilities into full compliance.