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The US Treasury Division is at present investigating JPMorgan Chase & Co. (NYSE:JPM) for its enterprise dealings with Ocean Leonid Investments Ltd., a hedge fund linked to Iranian oil dealer Hossein Shamkhani, Bloomberg Information reported. The inquiry is targeted on whether or not the New York-based financial institution adhered to laws in its relationship with the shopper, which has been suspended by Dubai’s monetary free zone.
The investigation, nonetheless in its preliminary section, was spurred by a report on October 24 that recognized Ocean Leonid as a hedge fund with places of work in London, Dubai, and Geneva, allegedly overseen by Shamkhani. JPMorgan, together with ABN Amro Financial institution NV and Marex Group Plc, reportedly offered leverage to Ocean Leonid.
Each JPMorgan and the US Treasury have declined to touch upon the continuing probe. Equally, representatives for Ocean Leonid and Shamkhani, who was approached by his lawyer, haven’t offered any statements.
An Ocean Leonid spokesperson had beforehand refuted claims of Shamkhani’s involvement with the hedge fund, a place echoed by Shamkhani’s legal professional, denying any connection between Shamkhani and the agency.
Sources point out that JPMorgan will not be at present required to sever ties with Ocean Leonid, as neither the corporate nor Shamkhani are on any sanctions lists. The Treasury’s probe is primarily involved with Shamkhani’s actions, although the potential for compliance lapses on the financial institution can also be underneath overview. The Federal Reserve is equally assessing Western monetary establishments’ publicity to Shamkhani’s community however has not issued a press release concerning the matter.
US laws mandate that banks inside its jurisdiction conduct thorough shopper screenings to stop cash laundering and terrorist financing, and to report any suspicious actions to the authorities. Businesses such because the Workplace of the Comptroller of the Foreign money and the Federal Reserve are chargeable for making certain that monetary establishments have sturdy methods to adjust to these authorized obligations.
It’s noteworthy that Shamkhani’s father, Ali Shamkhani, a senior advisor to Iran’s Supreme Chief Ayatollah Ali Khamenei, was sanctioned in January 2020 by the US Treasury’s Workplace of International Belongings Management for his vital position in Iran’s protection insurance policies and coordination of varied nationwide actions.
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