Morgan Stanley Faces Finra Probe on Client Vetting, WSJ Says (1)

Morgan Stanley is being probed by the Financial Industry Regulatory Authority over its vetting of clients for the risk of money laundering, the Wall Street Journal reported.

The scrutiny focuses on the US bank’s clients, risk ranking and other practices from October 2021 through September 2024, the report said, citing unidentified people familiar with the matter. Morgan Stanley is already facing potential fines from federal investigations into its anti-money laundering practices, the report said.

Morgan Stanley has been working on fixing its client-screening practices after the Federal Reserve for years raised concerns about risk-management controls in the firm’s wealth-management ...