U.S. Treasury Investigates JPMorgan's Hedge Fund Ties

The U.S. Treasury Department is investigating JPMorgan Chase & Co.'s relationship with Ocean Leonid Investments Ltd., a hedge fund reportedly linked to Iranian oil trader Hossein Shamkhani. The inquiry aims to determine if JPMorgan complied with regulatory requirements when onboarding Ocean Leonid, which was recently suspended by Dubai's financial authority amid operational concerns. Although neither Shamkhani nor Ocean Leonid is on U.S. sanctions lists, the investigation will assess Shamkhani's activities and potential compliance gaps at JPMorgan. The Federal Reserve is also examining Western banks' ties to Shamkhani's network, highlighting the importance of vigilant monitoring for suspicious activities in financial institutions. Representatives for JPMorgan, Ocean Leonid, and Shamkhani have declined to comment on the matter. This investigation forms part of broader U.S. efforts to scrutinize financial dealings associated with sanctioned regimes.