Morgan Stanley, the US company Wall Street, was fined $ 10 million by the Financial Industry Regulatory Authority (FINRA) for compliance failures.
According to a Reuters report, citing FINRA and Morgan Stanley, the company agreed to pay $ 10 million after FINRA claimed to have expired in compliance for more than five years from January 2001 to April 2016. Morgan Stanley has admitted or denied the guilt in the settlement, but has signed the entry of FINRA's results, the surveillance agency in the sector. In a statement to Reuters, Morgan Stanley said he was pleased to resolve the issue for several years. Reuters reported that intermediaries must have policies and procedures on books that meet the detection and disruption of money laundering, but that Morgan Stanley's compliance has not been accepted. According to the report, FINRA has accused Morgan Stanley of having automated surveillance systems and not having obtained information from other internal systems. These falls damaged Morgan Stanley's ability to track billions of dollars in transfers and foreign currency transfers. According to Reuters, FINRA has stated that some of these transactions have been made to and from countries that are known to have money laundering problems.
Other violations covered by the agreement include the failure to monitor deposits of 2.7 billion penny shares between 2011 and 2013, the report noted. Reuters quoted the FINRA as saying that since 2013 Morgan Stanley has engaged in "extraordinary measures" to improve its anti-money laundering programs (AML), as a new system for monitoring stock transactions in penny and the insider trading.
Morgan Stanley was not the only bank on Wall Street to clash with FINRA in recent weeks. Earlier in December, the Financial Crimes Enforcement Network (FinCEN), a US Treasury Department office, fined $ 14.5 million of UBS for a voluntary violation of the Bank Secrecy Act. FinCEN stated that UBS succeeded in creating and using an appropriate AML system to address risks in the accounts both from traditional brokerage services and from banking services.