The US Securities and Exchange Commission and the Department of Justice last year launched a probe of JPMorgan's hiring practices over whether it had hired princelings – the family members of influential figures in the Chinese government and elite – to win business.
(Read more: Chinese official made job plea to JPMorgan's Dimon)
Hiring candidates in order to land specific business mandates would violate the US Foreign Corrupt Practices Act.
Mr Fang, who has worked at JPMorgan for a decade, has not been accused of any wrongdoing.
He spoke openly to the Financial Times about his own political links in 2011, when he was nominated as a delegate to the Chinese People's Political Consultative Conference.