NEW YORK (TheStreet) -- J.P. Morgan Chase (JPM) has agreed to pay federal officials $1.7 billion to settle criminal charges that the bank ignored warning signs of the Bernie Madoff ponzi scheme, which amounted to $65 billion. 

TheStreet's Brittany Umar added that it's the largest bank forfeiture in history, as well as the largest fine collected by the Department of Justice in a bank secrecy violation. 

As part of the agreement, JPM will have to acknowledge its wrongdoing. It will also have to reform its anti-money laundering policies, Umar said. 

She added that in exchange for the settlement, criminal charges will be deferred for two years. 

The recent fine -- which is just one of many in the past year for JPM -- comes five years after the arrest of Madoff, who is currently serving a 150-year prison sentence. 

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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