ZURICH, Feb 27 (Reuters) - The Swiss attorney general's office announced on Thursday that it had fined Morgan Stanley's Swiss operations $1 million for insufficient measures to prevent a client advisor from engaging in money laundering in 2010.
The office held the responsibility of the bank's former division, Bank Morgan Stanley (Switzerland) AG, for failing to intercede in the advisor's money laundering activities linked to bribery in Greece.
The case involved the late Greek Defense Minister Akis Tsohatzopoulos, convicted of money laundering by a Greek court in 2013.
Bribes funneled through Greece ended up in accounts held by a proxy and Tsohatzopoulos's cousin at the Swiss bank, triggering an investigation.
Morgan Stanley bore the costs of the legal proceedings and collaborated with authorities.
Morgan Stanley (Switzerland) GmbH agreed to accept the penalty order without opposition, as stated in the announcement released by the attorney general's office.