10.09.2020

OCC Assessed $60m Penalty Against Morgan Stanley

The Office of the Comptroller of the Currency (OCC) today assessed a $60 million civil money penalty against Morgan Stanley Bank, N.A., and Morgan Stanley Private Bank, N.A. (“the banks”)

The OCC took these actions based on the banks’ failure to exercise proper oversight of the 2016 decommissioning of two Wealth Management business data centers located in the U.S. Among other things, the banks failed to effectively assess or address risks associated with decommissioning its hardware; failed to adequately assess the risk of subcontracting the decommissioning work, including exercising adequate due diligence in selecting a vendor and monitoring its performance; and failed to maintain appropriate inventory of customer data stored on the decommissioned hardware devices.

In 2019, the banks experienced similar vendor management control deficiencies in connection with decommissioning other network devices that also stored customer data. The OCC found the noted deficiencies constitute unsafe or unsound practices and resulted in noncompliance with 12 CFR Part 30, Appendix B, “Interagency Guidelines Establishing Information Security Standards.”

The OCC penalty will be paid to the U.S. Treasury.

Source: OCC

Related articles

  1. Europe Faces Compliance Headaches

    The FCA and PRA fines are part of a $2.9bn global resolution in connection with 1MDB.

  2. Europe Leads Sustainable Investing

    They will jointly develop and manage a sustainable infrastructure and resource management platform.

  3. Morgan Stanley is setting up a Diversity and Inclusion Institute.

  4. This is the first institutional participant to connect to BSDEX from outside the Boerse Stuttgart Group.

  5. The low-code application platform provider aims to grow globally after its next funding round.