It is reported that JPMorgan Chase is under investigation by the United States for its business dealings in Iran
The U.S. Treasury is investigating JPMorgan Chase's relationship with a hedge fund suspected of being linked to Iranian oil trader Hossein Shamkhani. The investigation primarily focuses on JPMorgan's compliance when accepting Ocean Leonid Investments Ltd. as a client. Although the hedge fund has been halted in the Dubai International Financial Centre, JPMorgan is not required to drop the client. The Federal Reserve is also investigating Shamkhani's network's financial exposure in the West. On Friday, pre-market trading showed little change in JPMorgan's stock price
According to reports, the U.S. Department of the Treasury is investigating JPMorgan Chase (JPM.US) regarding its relationship with a hedge fund suspected of being part of a network controlled by Iranian oil trader Hossein Shamkhani.
Insiders indicate that the investigation is still in its early stages, primarily examining whether JPMorgan Chase complied with all regulations when accepting Ocean Leonid Investments Ltd. as a client. The fund was recently halted by the Dubai Financial Free Zone.
Reportedly, the hedge fund Ocean Leonid has offices in Dubai, London, and Geneva, and is overseen by Shamkhani.
JPMorgan Chase is not required to drop the client, as neither Ocean Leonid nor Shamkhani is on the sanctions list. Insiders state that the U.S. Treasury is mainly focused on Shamkhani's activities; however, the possibility of insufficient bank compliance is also a consideration.
Previously, Ocean Leonid denied allegations of any connection between Shamkhani and the company.
Insiders also noted that the Federal Reserve is investigating Shamkhani's network's financial exposure in the West.
On Friday, JPMorgan Chase's stock price showed little change in pre-market trading