Morgan Stanley's wealth management arm under scrutiny by Federal Reserve - reports

Anti-money laundering practices

Valeria Martinez
clock • 1 min read

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...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Wealth Management

Latest from Investment IQ: 'Higher for longer' and dodging a recession brings risks

Latest from Investment IQ: 'Higher for longer' and dodging a recession brings risks

Join our sister site Investment IQ for the latest investment intelligence

clock 30 October 2023 • 2 min read