Morgan Stanley Faces Intensified Federal Scrutiny Over Wealth Management Practices

Multiple U.S. regulatory agencies are probing Morgan Stanley's wealth management arm for potential money laundering and inadequate client vetting.

U.S. regulators, including the SEC, OCC, and Treasury Department, are investigating Morgan Stanley's client vetting and anti-money laundering measures.
The scrutiny focuses on the bank's practices with wealthy international clients, some of whom have been previously flagged by other financial institutions.
Morgan Stanley's stock has dropped significantly, reflecting investor concerns over the ongoing investigations.
Past regulatory issues have resulted in multiple settlements with the SEC, totaling over $600 million in the last decade.
The bank is enhancing its compliance and technology systems to address regulatory concerns.