Morgan Stanley’s wealth management arm is being scrutinized by the Federal Reserve, the Wall Street Journal reported Wednesday, citing people familiar with the matter.
The regulator is looking into whether the bank has sufficient controls in place to prevent rich foreign customers from laundering money, the Journal’s report added.
The Fed has privately reprimanded the bank for not making all the required changes, and Morgan Stanley’s wealth management business head, Andy Saperstein, has been meeting with Fed officials to address the issues, according to the report.
The Fed declined to comment and Morgan Stanley did not immediately respond to a Reuters request for comment.
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