Singapore’s central bank fined U.S. lender JPMorgan Chase S$2.4 million ($1.79 million) for failing to detect and prevent misconduct committed by its employees.
The Monetary Authority of Singapore (MAS) stated that JPMorgan’s relationship managers caused customers to pay higher spreads than the agreed rate in 24 over-the-counter bond transactions by providing inaccurate or incomplete information.
Furthermore, MAS also criticized JPMorgan Chase for failing to establish adequate processes to supervise its relationship managers, despite the bank updating its internal controls, monitoring, and training framework in 2020, according to their statement.
Nevertheless, JPMorgan Chase acknowledged its failure, paid the civil penalty to MAS, refunded the overcharged fees to affected clients, and further enhanced its pricing frameworks and internal controls.
MAS has confirmed it will continue investigating the individual relationship managers involved in the misconduct. Meanwhile, JPMorgan Chase, pleased with the outcome, noted that the misconduct represents a very small portion of the total trades that the company processed during the related period.
