U.S. Senator Ron Wyden has called on federal regulators to examine how major Wall Street banks managed accounts tied to the late convicted sex offender Jeffrey Epstein, following the publication of a report he released on Tuesday. The report alleges potential lapses in anti-money laundering compliance at Bank of America, Deutsche Bank and JPMorgan Chase, centered on the timeliness and adequacy of suspicious-activity reporting.
Wyden's investigation lasted four years and drew on a range of materials he said were relevant to evaluating bank compliance. The senator's review included suspicious activity reports - the filings banks make to the U.S. Treasury when they detect potentially illicit transactions - along with documents from lawsuits and court filings, and information the senator requested from the banks and from Treasury.
According to the report, Bank of America did not properly screen or report about $170 million in payments to Epstein, and later filed suspicious activity reports concluding the transactions lacked a verifiable business purpose. A Bank of America spokesperson responded by saying, "We take our legal and regulatory obligations seriously and, as we have previously said, the bank did not facilitate wrongdoing."
The report further alleges that Deutsche Bank failed to report, in a timely manner, more than $250 million in suspicious wire transfers associated with Epstein, including transfers to women in Russia and other parts of Eastern Europe. In reply, Deutsche Bank said it takes its legal obligations seriously and regrets its historical connection with Epstein.
Wyden's findings also target JPMorgan, asserting the bank delayed reporting in excess of $1 billion in suspicious transfers linked to Epstein, including payments to women in Russia and Belarus. A JPMorgan spokesperson disputed that characterization as false and said, "We began flagging suspicious transactions for the government as early as 2002 and throughout our relationship...even after we closed his accounts. We acted appropriately on what we knew, when we knew it, as the law requires."
The report notes that Epstein was a JPMorgan client from 1998 until the bank ended the relationship in 2013, which occurred years after Epstein pleaded guilty to prostitution-related charges. The report also states that Deutsche Bank accepted Epstein as a client in 2013 after JPMorgan closed his accounts.
Wyden's release indicates possible violations of federal anti-money laundering statutes by the banks, based on the timelines and content of suspicious-activity reports and other materials he reviewed. The report links specific dollar amounts to each institution: roughly $170 million for Bank of America, more than $250 million for Deutsche Bank, and over $1 billion in transfers tied to Epstein that Wyden attributes to delayed reporting by JPMorgan.
Representatives for the banks have maintained their respective positions in public statements. Bank of America emphasized its commitment to legal and regulatory obligations and denied facilitating wrongdoing. Deutsche Bank acknowledged and expressed regret over its past relationship with Epstein while emphasizing its compliance responsibilities. JPMorgan asserted it flagged suspicious activity to authorities beginning in 2002 and acted in accordance with legal requirements throughout and after the client relationship.
The report's details could not be independently verified from the materials released alongside the senator's statement. An administration official, quoted by the report, said the Treasury Department does not comment on investigations, including confirming or denying whether one exists, and added that Treasury has fully cooperated with valid Congressional requests for information.
Epstein died in a Manhattan jail cell in August 2019 while awaiting trial on sex trafficking charges. New York City's medical examiner ruled his death a suicide.
Wyden is not alone in pursuing questions about Epstein's connections to financial firms. Lawmakers on the House Oversight Committee have recently questioned individuals who had ties to Epstein, including testimony from Goldman Sachs' former top lawyer Kathy Ruemmler and former Barclays CEO Jes Staley regarding their dealings with him. Both witnesses told the committee they were unaware of Epstein's crimes.
Context and next steps
The senator's report frames a set of compliance and reporting issues that he believes warrant scrutiny by federal regulators. Whether regulators will open formal inquiries, and what disciplinary or remedial actions might follow, remains to be seen. The banks' statements indicate disagreement with some of the report's conclusions and emphasize historic cooperation with authorities.