Fed Probes Morgan Stanley’s Worldwide Wealth-Administration Practices

Morgan Stanley’s wealth-management arm is being scrutinized by the Federal Reserve, which is wanting into whether or not the financial institution has ample controls in place to forestall wealthy overseas prospects from laundering cash. 

The Fed has been probing how Morgan Stanley vets foreigners and the origins of their cash earlier than taking them on as prospects, in response to folks aware of the matter. What began out as a routine evaluation a number of years in the past escalated after regulators discovered the financial institution’s due diligence on purchasers and anti-money-laundering efforts missing.