The Financial Industry Regulatory Authority charged a $10 million fine to Morgan Stanley for alleged deficiencies in its supervisory system as required under the Securities Act of 1933 and in its anti-money laundering program.
The alleged failures spanned more than five years. Morgan Stanley consented to the regulatory authority's findings without admitting or denying the charges.
FINRA said that Morgan Stanley's automated surveillance system failed to receive critical data from several systems, thus harming its surveillance of tens of billions of dollars of wire and foreign currency transfers. The bank also allegedly failed to invest sufficient resources to review alerts generated by the system and that its anti-money laundering department failed to sufficiently monitor deposits and penny stock trades for potentially suspicious activities.