Morgan Stanley faces Finra probe on client-vetting: report
The firm has been working on fixing its client-screening practices after the US Federal Reserve for years raised concerns about risk-management controls in the firm’s wealth-management unit
[SYDNEY] Morgan Stanley is being probed by the Financial Industry Regulatory Authority (Finra) over its vetting of clients for risk of money laundering, The Wall Street Journal (WSJ) reported.
The scrutiny focuses on the US bank’s clients, risk ranking and other practices from Oct 2021 to Sep 2004, the report said, citing unidentified sources familiar with the matter. Morgan Stanley is already facing potential fines from federal investigations into its anti-money laundering practices, the report said.
Morgan Stanley has been working on fixing its client-screening practices after the US Federal Reserve for years raised concerns about risk-management controls in the firm’s wealth-management unit.
A Morgan Stanley spokesperson said the company has made substantial investments in its anti-money-laundering and other client-vetting programmes over the past several years that are benefiting its business, according to the WSJ report.
Within the probe, Finra has asked for information on US and international customers in the firm’s wealth-management division, as well as in the unit that houses its trading desks, the report said. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
If Europe goes to war, the fallout will be felt in East Asia
Singapore universities could do more to shed light on endowment returns
MAS urges banks to limit exposure or cut ties with clients over clear environmental breaches linked to haze
Keppel posts 20% rise in Q3 net profit; New Keppel earnings up 15%
