WSJ Reports Morgan Stanley Fined $10 Million for Money Laundering Activity Detection Failure
Traditional banks often affirm that the crypto market is often used for money laundering and that it should be banned or sanctioned because of this. However, there are days in which the anti-bank rhetoric of the banks can be somewhat ironic.
These are the days in which we discover that another major bank is being investigated for money laundering related activities.
Morgan Stanley Is fined For $10 Million USD
According to a recent article published on the Wall Street Journal, Morgan Stanley was fined in $10 million USD for not being able to curb money laundering. The fine was imposed by the Financial Industry Regulatory Authority over the Anti-Money Laundering program of Morgan Stanley.
The reason is that the bank has “failed” to coordinate the supervision of suspicious transactions, according to the regulator. The AML program of Morgan Stanley is completely automated but it did not have enough critical data to detect all the money that is sent abroad using the bank. This includes money sent to foreign exchanges in countries that are deemed “risky” by the regulator.
Another aspect that bothered the regulator was that the bank did not implement any procedures that could be used to allow the periodic reviews of its own systems and that the monitoring was simply too inefficient. Penny stock trade, for instance, was not very well monitored, according to the Financial Industry Regulatory Authority.
The bank only answered that it was “pleased” to solve the matter “from several years ago”, referring to the fact that the fine was for the period from 2011 to 2015. They also affirmed that the bank would work to be more protected against money laundering.
Hypocrisy Is Contagious: Other Banks Are Also Accused Of Money Laundering
Many banks had problems for being compliant with anti-money laundering regulation this year, which is very curious when you consider that many of these same banks accuse cryptos of not being compliant with money laundering, despite the fact that a lot less money is laundered via cryptos than via major banks.
Last month, the Deutsche Bank, for instance, was raided by the police and it was discovered that the bank was heavily invested in money laundering and that it had created accounts for its clients in many taxes havens.
The Danske Bank was another one that came under fire for money laundering this year. At the time, the CEO of the company resigned as there were allegations that hundreds of billions of dollars were laundered using the bank.
This case with Morgan Stanley and the other two banks are not isolated cases. There is a lot of money laundering in the world and the banking institutions are considerably more guilty than cryptos for it. We all wait, then, for the way the banks will finally admit it.