The Russian central bank issued a warning to the management of JPMorgan Chase & Co. unit Commercial Bank J.P. Morgan Bank International (LLC) over violations of the country's money laundering legislation.
The regulator said Jan. 10 that the lender violated article 15.27 of Russia's Administrative Offences Code, but did not provide further details. The article in question deals with the failure to report information about operations subject to mandatory control or deemed suspicious by bank employees, Vedomosti said.
Natalia Shchetinina, who serves as head of external relations at the Russian lender, was cited as saying that the central bank identified small technical issues in the content of the lender's internal control rules. The financial institution already amended the rules and received confirmation from the central bank that they are now fully compliant with regulatory requirements, the executive added.
In addition to receiving a warning, the executives of J.P. Morgan Bank International could also receive a fine of up to 30,000 Russian rubles, while the bank itself could face a financial penalty of up to 100,000 rubles, although the fines can only be imposed as a result of a court decision, the newspaper said.
As of Jan. 10, US$1 was equivalent to 67.01 Russian rubles.