Two months ago, CEO of JP Morgan, US banking and financial services company headquartered in New York City, Jamie Dimon angrily lashed out at Bitcoin and labelled it a fraud and a money-laundering tool. Let’s jog our memory for a minute.
Dimon said in September, “It's just not a real thing, eventually it will be closed. I'm not saying ‘go short bitcoin and sell $100,000 of bitcoin before it goes down'. This is not advice of what to do. My daughter bought bitcoin, it went up and now she thinks she's a genius.”
He even likened the bitcoin mania to the tulip bubble of the 17th century, “It could be worse than tulip bulbs. It won't end well. Someone is going to get killed. Currencies have legal support. It will blow up. Bitcoin could only be useful for a drug dealer or a murderer or for money-laundering activities. If you are stupid enough to buy bitcoin, you’ll pay the price one day for it.”
Dismissing the cryptocurrency market, he added, “Who cares about bitcoin? The world economy's so big, JPMorgan alone, $6 trillion, we move all this money, and bitcoin in total, all these currencies, $50 billion dollars, maybe a billion dollars trades a day. Governments are going to crush it one day. Governments like to know where the money is, who has it and what you're doing with it, in case you haven't noticed. Right?”
Dimon also said he'd “fire in a second” any JPMorgan trader who was trading bitcoin, noting two reasons: “It's against our rules and they are stupid. This is the last time I'm ever going to answer questions about bitcoin because I really don't care.” Dimon has since repeatedly made and broken promises to not talk about Bitcoin anymore.
Low and behold, Swiss daily news publication Handelszeitung reports this week that the Swiss subsidiary of the major US bank JP Morgan has seriously violated the supervisory law and has been sanctioned accordingly by the Financial Market Authority Finma. It is about breaches of due diligence in connection with applicable money laundering standards. The decision of the Financial Market Authority Finma was issued on 30 June 2017 and should be published in the following week.
Responding to the allegations of money laundering, JPMorgan briefly stated the bank is trying its best to support the safety and soundness of the global monetary system.
“We have developed our anti-money laundering measures significantly over the past few years and are constantly working to improve them to ensure that we meet the regulators' expectations,” the bank's spokeswoman said in a statement.
Neither FINMA nor JPMorgan would be inclined to provide any further details as FINMA’s ruling in June isn’t published as of yet.
This is not the first time JPMorgan has fallen foul of the law. Back in February 2012, JP Morgan-Chase agreed to pay $5.1B in restitution for its mortgage fraud, which included widescale foreclosures on people who were not even Morgan-Chase customers — the company forged documents that allowed them to seize random houses and sell them out from under their owners.