FINRA Investigates Morgan Stanley’s Wealth Unit Over AML Vetting

The Financial Industry Regulatory Authority has opened an investigation into Morgan Stanley’s wealth-management division to determine whether the bank adequately screened clients for money-laundering risks, according to a report by The Wall Street Journal. The probe is examining the firm’s risk ratings, enhanced due-diligence procedures and ongoing monitoring of accounts from October 2021 through September 2024, with particular attention to customers from jurisdictions associated with corruption and drug trafficking. FINRA’s review adds regulatory pressure on one of Wall Street’s largest wealth managers, which oversees trillions of dollars in client assets. Details on potential findings or sanctions have not been disclosed.