Aug. 25, 2011 5:13 PM ET

JPMorgan paying $88.3M over alleged violations

WASHINGTON (AP) — JPMorgan Chase Bank is paying $88.3 million in an agreement with the Treasury Department, which says the bank violated regulations that prohibit financial aid for illicit nuclear trade, and trade with Cuba and Sudan.

Treasury's Office of Foreign Assets Control announced the agreement Thursday with the big Wall Street bank. The office said some of JPMorgan Chase's "apparent violations" of the regulations were serious.

In one case the bank in December 2009 made a $2.9 million trade loan to another bank, which extended credit to a ship that had been identified as linked to the Iranian government's shipping lines, OFAC said. It said JPMorgan managers knew the loan violated the regulations against helping nations that proliferate weapons of mass destruction, but didn't notify the government until March 2010.

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