The US Federal Reserve is looking into Morgan Stanley’s wealth management arm, with a focus on identifying whether the firm has adequate controls to prevent money laundering practices.
People with knowledge of the situation told the Wall Street Journal that the Fed has been looking into how Morgan Stanley screens foreigners and the source of their funds before accepting them as clients. According to the newspaper, what initially began as a standard examination a few years back, has now intensified, as regulators discovered deficiencies in the bank's due diligence of customers and its measures against money laundering. Morgan Stanley IM opens up American Resilience equity fund to UK investors The Fed is pressuring the bank's management to improve controls and pro...
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