The Dutch Public Prosecutor has imposed a fine of 101 million euros on two Morgan Stanley entities in London and Amsterdam for dividend tax evasion, the OM said today (Thursday).

Separately, Morgan Stanley is under investigation by FINRA over its client screening and risk assessment procedures. The review, covering October 2021 through September 2024, includes the bank’s wealth management division, including E*Trade, and its institutional securities unit.

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Regulators have requested information on client risk scoring, reporting structures, and organizational charts. Earlier submissions contained incomplete data, prompting the bank to provide additional details.

Dutch Tax Dispute Resolved After Years

The penalty is separate from the tax liability Morgan Stanley settled with the Dutch Tax Administration at the end of 2024, including accrued interest, the OM added. Under Dutch law, domestic shareholders can reclaim or offset dividend taxes, but foreign recipients usually cannot.

According to the OM, Morgan Stanley used a structure that allowed parties who were not eligible to improperly claim these tax rebates.

Earlier this year, the OM said it would summon Morgan Stanley. Just before the start of criminal proceedings, the company agreed to accept the fine.

Morgan Stanley said it was "pleased to have resolved this historical matter," which concerned corporate tax returns filed in the Netherlands more than 12 years ago.