J.P. Morgan provides account validation to the U.S. Government
The Corporate & Investment Bank at J.P. Morgan is an industry leader in banking, markets, and securities services around the world. We conduct business in over a hundred different nations on behalf of some of the world’s largest companies, governments, and institutions.
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J.P. Morgan has stated that it has been selected by the US Treasury Department to act as the government’s account validation agency under a financial agency arrangement. J.P. Morgan was chosen after a competitive selection procedure, and their participation in the program will last for at least five years.
The partnership with J.P. Morgan symbolizes the Treasury’s dedication to payment integrity and the reduction of fraudulent payments through account validation. Social Security and Medicare payments, unemployment insurance, and tax refunds were only some of the roughly 1.4 billion payments totaling $5.27 trillion that Fiscal Service disbursed for federal agencies in the fiscal year 2022.
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Secure payments technology
J.P. Morgan will now be responsible for verifying essential payment information on behalf of the federal government prior to the release of payments. Using its broad network of protected client information and industry data, the bank’s cutting-edge technology will verify payment details. The bank has made substantial investments in real-time payments and other secure payment technology in recent years, and it already processes, on average, more than $9 trillion every day.
J.P. Morgan recently took on a new task for the Treasury Department: verifying customer accounts. In recent years, the bank has taken on new responsibilities, including advising the Treasury on the digitization of payment systems and the modernization of operations to facilitate faster and more secure payments to and receipts from citizens and enterprises.
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Delays in transferring necessary monies to their intended recipients, monetary losses, and a decline in public faith in government services can result from improper payments caused by fraud or clerical errors. According to the United States Government Accountability Office, erroneous payments totaled an estimated $247 billion during the federal government’s fiscal year 2022. All payments, whether paid too much, too little, or not at all, fall within this category.
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