The U.S. Financial Industry Regulatory Authority (FINRA) is investigating Morgan Stanley for how they screened clients for money-laundering risks. The probe covers client vetting and risk rankings from October 2021 to September 2024. FINRA is seeking information on U.S. and international clients across Morgan Stanley’s wealth unit and institutional securities division.

Employees raised concerns about incomplete or inaccurate data sent to FINRA, prompting Morgan Stanley to provide additional information. The bank stated it has invested significantly in anti-money-laundering and client-vetting programs. The investigation does not indicate problems with business or controls, according to a Morgan Stanley spokesperson.

In December 2018, FINRA fined Morgan Stanley $10 million for anti-money laundering compliance failures over a five-year period. The current investigation looks into client screening practices and tools used by the bank. FINRA declined to comment, while Morgan Stanley has not responded to requests for comment on the matter.

Read more at Yahoo Finance: Morgan Stanley’s client-screening faces deeper FINRA probe, WSJ reports