US lender JP Morgan Chase was fined for being incompetent in preventing its relationship managers from defrauding its clients. On Monday, the Central Bank of Singapore fined the US lender $1.79 million for failing to prevent and detect the misconduct.
According to Yahoo Finance, the Monetary Authority of Singapore (MAS) reported that the bank’s relationship manager was accused of giving clients inaccurate or incomplete information in 24 over-the-counter bond transactions. Additionally, MAS noted that clients were charged a higher spread than what they had originally agreed upon.
Also, the Central Bank of Singapore accused the bank of lacking the necessary processes and controls to ensure clients were offered the right guidance on JP Morgan Chase’s terms and conditions. Moreover, the bank does not have the necessary control measures to prevent the relationship managers from charging more than the agreed-upon spread rates with clients.
The US lender later accepted these allegations and admitted faults in their mechanism that resulted in the misconduct. Also, Yahoo Finance reported that JP Morgan Chase paid the Civil liability to the MAS and refunded the overcharged fees. They further improved pricing frameworks and internal control.
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The Central Bank of Singapore reported, “The bank has refunded the overcharged fees to affected clients. The bank has also enhanced its pricing frameworks and internal controls to prevent the recurrence of such misconduct.”
