Morgan Stanley’s wealth management division is under investigation by multiple regulators. The Wall Street Journal reported Thursday, citing a person familiar with the matter.
The Securities and Exchange Commission, the Office of the Comptroller of the Currency and other Treasury Department agencies are involved, according to the report.
According to the report, the main questions in the investigation are whether banks adequately investigate the identities of potential customers and the source of their wealth, and how they monitor customers’ financial activities.
Some of the investigations also focus on overseas customers, the report added.
Morgan Stanley did not respond to a Reuters request for comment.
Shares fell 4.5% on Thursday.
