Major banks are often subject to money laundering. But, an article reported that the Financial Industry Regulatory Authority fined Morgan Stanley for anti-money laundering (AML) program. Most banks are acting anti-crypto rhetoric over the possibility for money laundering. This makes it ironic when one of the largest banks in the world is also responsible. This is because of its lack of capacity to do enough to prevent or detect it.
$10 Million Fine
According to reports, yesterday Morgan Stanley had to pay $10 million fine. Financial Industry Regulatory Authority levied the sanction. This was a result of a probe into its anti-money laundering (AML) program. On Wednesday, Finra declared that the bank had failed to properly detect and coordinate the supervision of certain transactions. These transactions were within its anti-money-laundering program for more than five years.
Explanations For The Fine
The regulator explained further that Morgan Stanley’s automated AML surveillance program didn’t do enough to prevent the transaction. It didn’t receive the critical data needed to detect tens of billions of dollars in wire transfers and foreign exchanges from high risk countries. According to Finra, the bank had not implemented procedures that would allow periodic reviews of its systems. This is despite the fact that some issues occurred in its system for over a five-year period from 2011 to 2016.
Also the bank had inefficiently coordinated customer accounts for suspicious or heavy activity. Some regards were also made about penny stock resulting in about 2.7 billion shares. This deposit was also along with subsequent sales of around $164 billion.
According to the WSJ, the bank accepted the fine without admitting or denying the claims. The bank’s official response was;
We are pleased to have resolved this matter from several years ago. We’ll continuously work to strengthen our controls and have been recognized by Finra. This will aid the need for extraordinary steps we have to take to expand and enhance our AML program.
Other Major Banks Investigated For Money Laundering
According to reports, Morgan Stanley isn’t the only bank at fault. Other banks are a part of the hot water over money laundering. Last month NewsBTC reported that some investigations were carried out. It revealed that the bank is believed to have handled $354 million in dirty money in 2016.
The evidence also revealed that the German bank involved in giving offshore accounts. This was to clients in various tax havens. It shift to finances. Three months ago, Danske Bank scrutinized for money laundering. The CEO resigned due to the allegations of potential money laundering. The acquisition involved hundreds of billions of dollars. This exceeded the entire cryptocurrency market capital at the time.
What is your take on the strict measures employed on financial institutions and its effects on the crypto market You can share your opinion on this topic and lots more on our Twitter and Facebook pages.