As Bank Holding Companies, Past Investment Giants Will Face Tougher AML Exams, Say Former Examiners

By Matt Squire

Financial institutions that have recently become bank holding companies will face much tougher anti-money laundering regulatory exams through the Federal Reserve Board, say compliance experts. Since September, Morgan Stanley, Goldman Sachs and American Express have all said that they were transitioning to become depository institutions in response to economic troubles. The former two had previously been regulated for anti-money laundering (AML) compliance through the Financial Industry Regulatory Authority (Finra). The financial institutions, and other companies in the insurance industry, will have to revamp their AML controls to handle new requirements and a new regulator unlikely to grant them much leniency,...