JPMorgan Chase & Co has agreed to pay $264.4 million in fines to federal authorities in the US to settle criminal and civil charges that it hired friends and relatives of Chinese officials in order to gain access to banking deals in that country. The Asia unit of the bank had allegedly created a program that would hire the children and friends of high-ranking Chinese officials, regardless of the person’s qualifications, in order to gain favor and win banking deals. The US has one of the strictest bribery laws in the world, known as the Foreign Corrupt Practices Act, where it effectively bans US companies from paying foreign government officials to obtain or retain business. While JPMorgan did not pay Chinese officials directly, federal authorities said the hiring of unqualified persons related to Chinese officials was effectively the same thing. The department of justice estimates the Asia affiliate of JPMorgan earned at least $35 million in profits from Chinese state-owned companies.
