A sign marks the Los Angeles offices of JPMorgan. File picture: Lucy Nicholson

New York - A federal judge on Wednesday approved an agreement between JPMorgan Chase & Co and US prosecutors to settle charges that the bank violated anti-money laundering laws by failing to alert authorities to warning signs its employees encountered in dealings with convicted Ponzi schemer Bernard Madoff.

The settlement, which deferred the criminal charges against the bank until January 8 2016, requires the bank to pay a $1.7 billion forfeiture and improve its anti-money laundering controls.

If it meets the terms by the appointed date, prosecutors can chose to dismiss the charges against it. - Reuters