The Global Financial Crimes group (GFC) is dedicated to the implementation of Morgan Stanley’s enterprise-wide financial crime prevention efforts, which include transactional surveillance and suspicious activity reporting as well as governance, oversight and execution of the Firm’s AML, Sanctions, Anti-Corruption and Government and Political Activities Compliance programs. One of GFC’s core functions is to investigate activity flagged by the Firm’s Anti-Money Laundering -Transaction Monitoring System (TMS). TMS is an internally-developed, scenario-based system where each scenario is designed to monitor client accounts Firm-wide for a particular behavior, or set of behavior patterns, that is associated with an elevated likelihood of money laundering. Instances of suspected money laundering detected by TMS generate alerts that are investigated and, if deemed suspicious, are escalated and potentially reported. The model has multiple scenarios that run globally to identify money laundering and terrorist financing typologies.
The Capstone team will examine the current TMS model and help assess the effectiveness of each scenario’s ability to capture potentially illicit transactions relative to Morgan Stanley’s client base, client jurisdiction, product offerings, and overall business model. The team will meet with members of the GFC group and make recommendations on how to improve existing scenarios to more accurately target suspicious client activity. Finally, the team will have the opportunity to propose new scenarios that can detect potentially suspicious transactions not covered under the current TMS model.