JP Morgan convicted by Swiss for failing to stop money laundering in 1MDB case

LONDON, Aug 22 (Reuters) - Swiss federal prosecutors on Friday said they had convicted JP Morgan JPM.N of failing to prevent aggravated money laundering related to the scandal at Malaysian state fund 1MDB, and fined the U.S. bank 3 million francs ($3.7 million).

The Office of the Attorney General of Switzerland said it had issued a summary penalty order against the bank for "failing to take all reasonable and necessary organizational measures to prevent the commission of aggravated money laundering." The transfer of funds related to the acts occurred between October 2014 and July 2015, the prosecutor said.

It had launched criminal proceedings against JP Morgan Suisse in 2022.

The size of the fine took into account the time lapsed and the bank's cooperation, the prosecutor added.

In a statement, JP Morgan said it was pleased to have resolved matters including working with the Malaysian government on past issues related to 1MDB.

"Since then, we've enhanced our controls, earning the trust of regulators in Switzerland and beyond," the bank said.

($1 = 0.8089 Swiss francs)