Morgan Stanley will have to pay $10 million after a regulatory body found that problems with the firm’s automated anti-money laundering system could have resulted in tens of billions of dollars in wire and currency transactions slipping through undetected.
The Financial Industry Regulatory Authority said in a Dec. 26 consent order that failures in Morgan Stanley’s automated AML alert system allowed transactions from countries with “high money laundering risk” to flow through the financial system from January 2011 through at least April 2016.
In addition, Morgan Stanley did not devote sufficient resources to reviewing suspicious transactions, resulting in analysts closing ...
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