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Will Morgan Stanley be fined over AML failures by end of 2024?
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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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U.S. Department of Justice • 25%
Financial Crimes Enforcement Network (FinCEN) • 25%
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