NEW YORK (TheStreet) -- JPMorgan Chase (JPM) has officially settled with federal authorities over criminal charges that the bank ignored warning signs of Bernard Madoff's $65 billion Ponzi scheme. The bank will pay $1.7 billion to settle the claims, which authorities say is the largest bank forfeiture in history -- and the largest penalty by the Department of Justice for a Bank Secrecy Act violation. As part of the agreement, JPMorgan acknowledges its wrongdoing and must reform its anti-money laundering policies. In exchange, criminal charges against the bank will be deferred for two years.
The Bank Secrecy Act requires banks to alert authorities about any suspicious activity.
As part of the agreement, JPMorgan acknowledges its wrongdoing through two felony violations of the Act and must reform its anti-money laundering policies. In exchange, criminal charges against the bank will be deferred for two years. The deal is JPMorgan's latest in a string of settlements of government investigations in the past year.
It comes approximately five years after Madoff's arrest as he continues to serve a 150-year prison sentence.
In New York, I'm Brittany Umar for TheStreet.
Written by Brittany Umar in New York.
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