Fed Probes Morgan Stanley’s International Wealth Management Practices
Morgan Stanleyand The Federal Reserve is investigating the wealth management arm, which looks at whether the bank has enough controls to prevent wealthy foreign customers from laundering money.
The Fed has been investigating how Morgan Stanley vets foreigners and where their money came from before pretending to be customers, according to people familiar with the matter. What started as a routine investigation grew a few years ago after regulators discovered the bank’s lack of customer due diligence and anti-money laundering efforts.
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