(Reuters) -The Wall Road Journal reported on Tuesday that the US Monetary Business Regulatory Authority (Finra) was investigating Morgan Stanley on how the corporate examines prospects for the risks of cash laundering.
The report stated that the investigation examines the client’s examination and the classification of the dangers and associated practices by means of the wealth administration and circulation of the Wall Road Financial institution from October 2021 to September 2024.
Finra, a non -governmental group for self -regulation, is in search of to oversee the 2 American mediators beneath Federal Regulation, to acquire details about American and worldwide prospects by way of the wealth unit in Morgan Stanley, together with E*and the institutional securities division, in line with the journal.
The report added that the organizer additionally requested organizational plans, reporting traces and particulars in regards to the buyer threat device for the corporate.
The journal stated that some workers raised fears that the preliminary information despatched to the Finra was incomplete or inaccurate, which prompted the financial institution to offer extra info after the organized gaps that had been marked.
A spokesman for Morgan Stanley advised the Wall Road Journal that the financial institution has made important investments in its applications to fight cash laundering and its information, including that such organizational critiques will not be distinctive to the financial institution and don’t point out issues in its enterprise or controls.
Reuters couldn’t independently confirm the report. Finra refused to remark, whereas Morgan Stanley didn’t instantly reply to a request for remark.
The Morgan Stanley fined $ 10 million in December 2018 for the failure of compliance to fight cash laundering throughout a 5 -year interval.
(I participated in Bipasha Dey studies in Bangaluru; edited by Sumana Nandy and Sherry Jacob-Vhillips)
2025-07-23 02:17:00