As part of the agreement, JP Morgan’s corporate and investment bank will corroborate payment information for the department’s fiscal service prior to its payments being issued. It will seek to authenticate payment details by leveraging its own customer information alongside industry data it claims to regularly utilise within its own payment processing agenda.
The Treasury estimates that it dispersed close to $5.27 trillion to federal agencies during the fiscal year for 2022, typically to fund initiatives including social security, medicare, tax refunds and unemployment insurance. However, according to the figures of the US Government Accountability Office, $247 billion of this figure fell under the scope of what it describes as “improper payments”, where payees were either overpaid, underpaid or received a payment that should not have been made at all.
