Morgan Stanley’s Swiss Unit Fined $1 Million Over Money Laundering Failures

Morgan Stanley’s Swiss operations have been hit with a $1 million fine for failing to prevent a client advisor from engaging in qualified money laundering in 2010, according to a statement from the Swiss attorney general’s office.

The fine was imposed on the lender’s previous Swiss entity, Bank Morgan Stanley (Switzerland) AG, which was found liable for not stopping the advisor from laundering assets that originated from bribery in Greece. The attorney general’s office specified that the case was linked to the late former Greek Defence Minister Akis Tsohatzopoulos, who was convicted of money laundering by a Greek court in 2013.

The investigation revealed that bribes laundered in Greece were transferred to accounts at the bank in Switzerland. These accounts were held by a straw man and a cousin of Tsohatzopoulos, prompting further scrutiny by Swiss authorities.

The attorney general’s office also stated that the costs of the proceedings were imposed on Morgan Stanley. The bank cooperated with prosecutors during the investigation, the statement noted.

Furthermore, Morgan Stanley (Switzerland) GmbH informed the attorney general’s office that it would not contest the penalty order.

By fLEXI tEAM