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How will Morgan Stanley respond to AML compliance issues by mid-2025?
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Resolution / Starting Odds
Increase staff • 25%
Enhance technology • 25%
Policy overhaul • 25%
No significant change • 25%
Official statements or press releases from Morgan Stanley
Story
Morgan Stanley's AML Failures: 24% of International Accounts High Risk
Nov 26, 2024, 10:59 AM
Internal documents at Morgan Stanley reveal significant lapses in its anti-money-laundering (AML) controls, with staff expressing alarm over the situation. The documents highlight a failure to complete due-diligence reviews of clients, with some employees lacking the necessary language skills to assess client risk, resorting to Google Translate for understanding foreign documents. Morgan Stanley's wealth management division has been identified as having 24% of its international accounts classified as 'High/High+' risk for money laundering, according to a 2023 document. The bank's focus on international clients as a growth engine has led to a situation where the staff responsible for reviewing clients were laid off, exacerbating the issue. This has raised concerns about the bank's compliance with AML regulations and its ability to manage client risk effectively.
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Yes • 50%
No • 50%
Tightened reporting standards • 25%
No change in policies • 25%
Increased transparency measures • 25%
Other changes • 25%
Internal audit • 33%
Hiring external consultants • 33%
Restructuring compliance department • 33%
Acknowledges and Complies • 25%
Denies Allegations • 25%
Challenges Legally • 25%
Other Response • 25%
Yes • 50%
No • 50%
Yes • 50%
No • 50%
Yes • 50%
No • 50%
Recordkeeping failures • 25%
Insider trading • 25%
Market manipulation • 25%
Other • 25%
