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Wednesday, November 22, 2017, 10:55
Employee background check: JPMorgan fined US$1.25m
By Xinhua
Wednesday, November 22, 2017, 10:55 By Xinhua

This picture taken on June, 18, 2013 shows the 30-floor Chater House tower (left) housing the headquarters of investment bank JPMorgan in Hong Kong. (PHILIPPE LOPEZ / AFP)

JPMorgan did not appropriately screen 8,600 individuals for all felony convictions or for disciplinary actions by financial regulators

The Financial Industry Regulatory Authority

WASHINGTON - The Financial Industry Regulatory Authority (FINRA) on Tuesday fined JPMorgan's securities division US$1.25 million for failing to conduct timely or adequate background checks on 8,600 employees, including four people with criminal records.

FINRA, an independent regulator for all securities firms doing business in the US, found the inadequate background checks happened between January 2009 and May 2017.

JPMorgan did not appropriately screen 8,600 individuals for all felony convictions or for disciplinary actions by financial regulators, said FINRA.

Moreover, four employees were found subject to "statutory disqualification" because of some criminal history.

Susan Schroeder, Executive Vice President of FINRA's Department of Enforcement, said, "FINRA member firms play an important gatekeeper role in keeping bad actors from harming investors."

"We self-reported this matter and are pleased it's now behind us," said JPMorgan spokeswoman Jessica Francisco.

In settling this matter, JPMorgan neither admitted nor denied the charges.

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