The Financial Industry Regulatory Authority (FINRA) has fined Morgan Stanley $10M for compliance failures and anti-money laundering. The regulator says the issues occurred over the past five years. Although Morgan Stanley did not admit or deny the accusations, they agreed to the settlement.
A Morgan Stanley automated surveillance system did not receive important data from other Morgan Stanley systems, FINRA said. The lapse impaired the firm's overall tracking of tens of billions of dollars of wire and foreign currency transfers, FINRA said. Those transactions included transfers to and from countries known for money laundering risk, FINRA said.