Consumer complaint received 2021-09-28
Company: JPMORGAN CHASE & CO.
State: IL
Product: Money transfer, virtual currency, or money service
Sub-product: Domestic (US) money transfer
Issue: Fraud or scam

Complaint:
JPMORGAN CHASE BANK did not return all of the recalled funds after XXXX initiated the recall process. This case is related to the investment scam reported on XX/XX/2021, referenced to cfbp complaint # XXXX. JPMORGAN CHASE BANK stated that there are no more funds left in the fraudulent account and did not pursue to follow the money to recall outgoing funds from their fraudulently opened account ( s ) to assist in the recovery of these funds. JPMORGAN CHASE BANK showed deficiency in following KYC compliance program requirements and knowing their customer 's financial affairs. JPMORGAN CHASE BANKs system of internal controls did not effectively identify or address the KYC related risks that existed or that were related to the customers or accounts that shall have been viewed as high risk allowing fraudsters to open accounts and operate fraudulent activities and processing in/outgoing wire transfers using Banks accounts as a media to facilitate fraud. JPMORGAN CHASE BANKs management was ineffective in overseeing JPMORGAN CHASE BANKs day-to-day compliance with the KYC regulations and knowing their customer 's financial affairs. JPMORGAN CHASE BANKs KYC-related deficiencies demonstrate that JPMORGAN CHASE BANKs compliance program was ineffective, did not comply with the regulations, and was insufficient to ensure identification of and monitoring for suspicious activities. JPMORGAN CHASE BANK did not detect or investigate suspicious activities to determine whether XXXX filings were appropriate. JPMORGAN CHASE BANK failed to investigate suspicious activities occurring in their customer accounts related to money inflow and outflow activities. Bank did not adequately monitor for suspicious cash, wire, or monetary instrument transactions. In particular, JPMORGAN CHASE BANK failed to identify or to monitor potentially suspicious activity pertaining to incoming wire transfers and their immediate outgoing wire transfers structured to move the money quickly out of the accounts indicating fraudulent activities. JPMORGAN CHASE BANK failed to know their customer 's financial affairs in terms of source of income. JPMORGAN CHASE BANK failed to undertake sufficient due diligence regarding the source of funds being deposited into their customer account ( s ) as well as the outflow of the funds from their accounts. JPMORGAN CHASE BANK did not collect or maintain sufficient information about its banking customers.

In conclusion, JPMORGAN CHASE BANK engaged in violations of XXXX, know your customer financial affairs, and Suspicious Activity Reporting. 

The Bank 's failure to comply with these regulations caused substantial distress for the unaware customers falling into the investment scam operated by the Banks customers. 

JPM Chase Bank responded to XXXX handling the recall of my funds wired out from my XXXX account into two JPM Chase Banks customer fraudulent accounts returning only {$100000.00} out of {$230000.00} as follows : 1. The Bank recognized the problem returning partially {$100000.00} out of {$200000.00} wire transferred to JPMORGAN CHASE BANK, NA-XXXX  Account XXXX for XXXX XXXX XXXX at XXXX XXXX XXXX XXXX XXXX XXXX in XXXX, XXXX XXXX XXXX stating that the rest of the funds are gone. 

2. The Bank stated that there are no funds available in the JPMORGAN CHASE BANK, NA account XXXX for XXXX XXXX at XXXX XXXX, FL XXXX where I wire transferred {$39000.00} ; therefore, the Bank refused to return lost funds.

Company response to consumer: Closed with explanation