Latest news with #money-laundering
Zawya
2 days ago
- Business
- Zawya
Morgan Stanley's client-screening faces deeper FINRA probe, WSJ reports
The U.S. Financial Industry Regulatory Authority (FINRA) is investigating Morgan Stanley over how the firm screened clients for money-laundering risks, the Wall Street Journal reported on Tuesday, citing people familiar with the matter. The probe examines client vetting, risk rankings and related practices across the Wall Street bank's wealth-management and trading operations from October 2021 through September 2024, the report said. FINRA, a non-governmental self-regulatory organisation that oversees U.S. broker-dealers under federal law, is seeking information on U.S. and international clients across Morgan Stanley's wealth unit, including E*Trade, and its institutional securities division, according to the Journal. The regulator has also requested organisational charts, reporting lines and details on the firm's client risk-scoring tool, the report added. Some employees raised concerns that the initial data sent to FINRA was incomplete or inaccurate, prompting the bank to provide additional information after the regulator flagged gaps, the Journal said. A Morgan Stanley spokesperson told the Wall Street Journal the bank has made significant investments in its anti-money-laundering and client-vetting programmes, adding that such regulatory reviews are not unique to the bank and do not indicate problems with its business or controls. Reuters could not independently verify the report. FINRA declined to comment, while Morgan Stanley did not immediately respond to a request for comment.
Yahoo
2 days ago
- Business
- Yahoo
Morgan Stanley's client-screening faces deeper FINRA probe, WSJ reports
(Reuters) -The U.S. Financial Industry Regulatory Authority (FINRA) is investigating Morgan Stanley over how the firm screened clients for money-laundering risks, the Wall Street Journal reported on Tuesday, citing people familiar with the matter. The probe examines client vetting, risk rankings and related practices across the Wall Street bank's wealth-management and trading operations from October 2021 through September 2024, the report said. FINRA, a non-governmental self-regulatory organisation that oversees U.S. broker-dealers under federal law, is seeking information on U.S. and international clients across Morgan Stanley's wealth unit, including E*Trade, and its institutional securities division, according to the Journal. The regulator has also requested organisational charts, reporting lines and details on the firm's client risk-scoring tool, the report added. Some employees raised concerns that the initial data sent to FINRA was incomplete or inaccurate, prompting the bank to provide additional information after the regulator flagged gaps, the Journal said. A Morgan Stanley spokesperson told the Wall Street Journal the bank has made significant investments in its anti-money-laundering and client-vetting programmes, adding that such regulatory reviews are not unique to the bank and do not indicate problems with its business or controls. Reuters could not independently verify the report. FINRA declined to comment, while Morgan Stanley did not immediately respond to a request for comment. FINRA fined Morgan Stanley $10 million in December 2018 for anti-money laundering compliance failures over a five-year period. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
2 days ago
- Business
- Reuters
Morgan Stanley's client-screening faces deeper FINRA probe, WSJ reports
July 22 (Reuters) - The U.S. Financial Industry Regulatory Authority (FINRA) is investigating Morgan Stanley (MS.N), opens new tab over how the firm screened clients for money-laundering risks, the Wall Street Journal reported on Tuesday, citing people familiar with the matter. The probe examines client vetting, risk rankings and related practices across the Wall Street bank's wealth-management and trading operations from October 2021 through September 2024, the report said. FINRA, a non-governmental self-regulatory organisation that oversees U.S. broker-dealers under federal law, is seeking information on U.S. and international clients across Morgan Stanley's wealth unit, including E*Trade, and its institutional securities division, according to the Journal. The regulator has also requested organisational charts, reporting lines and details on the firm's client risk-scoring tool, the report added. Some employees raised concerns that the initial data sent to FINRA was incomplete or inaccurate, prompting the bank to provide additional information after the regulator flagged gaps, the Journal said. A Morgan Stanley spokesperson told the Wall Street Journal the bank has made significant investments in its anti-money-laundering and client-vetting programmes, adding that such regulatory reviews are not unique to the bank and do not indicate problems with its business or controls. Reuters could not independently verify the report. FINRA declined to comment, while Morgan Stanley did not immediately respond to a request for comment. FINRA fined Morgan Stanley $10 million in December 2018 for anti-money laundering compliance failures over a five-year period.
Yahoo
2 days ago
- Business
- Yahoo
Morgan Stanley's client-screening faces deeper FINRA probe, WSJ reports
(Reuters) -The U.S. Financial Industry Regulatory Authority (FINRA) is investigating Morgan Stanley over how the firm screened clients for money-laundering risks, the Wall Street Journal reported on Tuesday, citing people familiar with the matter. The probe examines client vetting, risk rankings and related practices across the Wall Street bank's wealth-management and trading operations from October 2021 through September 2024, the report said. FINRA, a non-governmental self-regulatory organisation that oversees U.S. broker-dealers under federal law, is seeking information on U.S. and international clients across Morgan Stanley's wealth unit, including E*Trade, and its institutional securities division, according to the Journal. The regulator has also requested organisational charts, reporting lines and details on the firm's client risk-scoring tool, the report added. Some employees raised concerns that the initial data sent to FINRA was incomplete or inaccurate, prompting the bank to provide additional information after the regulator flagged gaps, the Journal said. A Morgan Stanley spokesperson told the Wall Street Journal the bank has made significant investments in its anti-money-laundering and client-vetting programmes, adding that such regulatory reviews are not unique to the bank and do not indicate problems with its business or controls. Reuters could not independently verify the report. FINRA declined to comment, while Morgan Stanley did not immediately respond to a request for comment. FINRA fined Morgan Stanley $10 million in December 2018 for anti-money laundering compliance failures over a five-year period.
Telegraph
16-07-2025
- Business
- Telegraph
Barclays fined £42m over fraud linked to Bernie Ecclestone's former son-in-law
Barclays has been fined £42m for money-laundering failings in a case linked to Bernie Ecclestone's former son-in-law. The Financial Conduct Authority (FCA) said the bank suffered multiple 'failings in its financial crime risk management' while providing services to Stunt & Co, a gold bullion trader started by James Stunt. Mr Stunt is a London socialite and art collector who was married to Petra Ecclestone between 2011 and 2017. His business was found to be at the centre of a £266m money-laundering scheme and he was prosecuted as a result of his involvement. However, he was ultimately acquitted this year following a five-month trial at Leeds Crown Court. Four others involved in the scheme were separately convicted in March for their roles in what has been described as one of the largest money-laundering operations ever discovered in Britain. Police said the illicit funds were linked to organised crime, including drug dealing. The FCA said Barclays failed to collect sufficient information about the source of £46.8m worth of funds paid into Stunt & Co's account by another firm, Bradford jeweller Fowler Oldfield. The funds were later revealed to be the proceeds of crime. Barclays failed to monitor ongoing risks linked to Stunt & Co even after being informed that the company's offices had been raided by police, the watchdog said. Instead, the bank gave Stunt & Co's account a 'low-risk' rating, even after it became aware of the money-laundering investigations. Barclays only reviewed its relationship with Stunt & Co after it learnt of the FCA's decision to prosecute NatWest over its links to Fowler Oldfield. NatWest was subsequently fined £264.8m in 2021. The FCA also fined Barclays for failing to properly monitor wealth management firm WealthTek, whose founder has been accused of running one of the 'most serious and largest frauds' the City watchdog has ever investigated. John Dance, WealthTek's founder and a former DJ, has been accused of taking more than £64m from clients to fund a lavish lifestyle. This includes allegedly using funds to buy a nightclub and six racehorses including Bravemansgame, which won the King George VI Chase race at Kempton in 2022. Mr Dance faces fraud and money-laundering charges, with a court date set for September 2027. He has denied the charges. Barclays failed to collect sufficient information about WealthTek before giving it an account, meaning it missed a notice that the FCA had blocked the wealth management company from handling client money. Therese Chambers, of the FCA, said: 'The consequences of poor financial crime controls are very real – they allow criminals to launder the proceeds of their crimes and they allow fraudsters to defraud consumers. 'Banks need to take responsibility and act promptly, particularly when obvious risks are brought to their attention.' A Barclays spokesman said: 'Barclays remains deeply committed to the fight against financial crime and fraud. 'The FCA's investigation relating to Stunt & Co was centred around historical money-laundering activity and made no findings that the bank had breached money-laundering regulations. 'As acknowledged by the FCA, Barclays undertook an extensive review and self-reported its findings to the FCA. Barclays fully co-operated with both investigations and has further strengthened its financial crime and other control capabilities.'
