Morgan Stanley’s Wealth Management Arm Draws Fed Scrutiny
- Regulator has sought stronger anti-money laundering controls
- Unit’s overseer Saperstein privately vowed to fix shortcomings
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The Federal Reserve is scrutinizing whether Morgan Stanley’s wealth management business is taking adequate measures to prevent potential money laundering by wealthy clients from outside the US.
The New York-based bank’s top regulator is pressing the firm to improve controls and processes, according to a person with knowledge of the matter. Fed officials privately reprimanded the firm earlier for not making all of the changes it sought, the person said, asking not to be identified discussing the confidential talks.