JPMorgan Chase (NYSE:JPM) agreed on Thursday to pay the U.S. Treasury Department $88.3 million to settle allegations the company violated U.S. sanctions regarding Cuba, Iran and other nations.
The settlement was the largest ever involving sanctions violations paid by a U.S. financial institution. The company, operating under chief officer Jamie Dimon, said the incidents were isolated and not intentional.
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The U.S. alleges the Wall Street giant violated several sanctions with Cuba, Iran, Sudan and Liberia from December 2005 through March 2011, as well as broader restrictions against supporting terrorism and the proliferation of weapons of mass destruction.
In an apparent violation of the Cuban Assets Control Regulations, the company processed 1,711 wire transfers to people in Cuba over a three-month period totaling some $178.5 million, according to the department.
As a result of these apparent violations, considerable economic benefit was conferred to sanctioned persons, the Treasury said in a statement.
The Treasury also claims J.P. Morgan made a $2.9 million loan in December 2009 to facilitate a transaction connected with the Islamic Republic of Iran Shipping Lines.
The Treasury Department said those violations were determined to be egregious because of reckless acts or omissions by J.P. Morgan.