The American bank, JP Morgan Chase, has agreed to pay 1.7 billion dollars to victims of the convicted fraudster, Bernard Madoff following a settlement with US prosecutors.The settlement comes after Federal prosecutors accused the bank of ignoring red flags about Madoff's crimes. The Bank admitted it had not maintained an effective anti-money laundering programme. The New York District Attorney, Preet Bharara said, the Bank had only acted when its profits were at risk.The bank has agreed to improve its controls as part of the settlement. The settlement includes a so-called deferred prosecution agreement that will dismiss criminal charges after two years if the bank remains compliant.