** Morgan Stanley expects Bendigo and Adelaide Bank BEN.AX to raise a provision or include costs in its investment spending after the bank flagged money laundering concerns

** On Tuesday, co said its anti-money laundering and counter-terrorism financing controls were found to have deficiencies impacting its risk management framework across branches as part of an investigation by Deloitte

** "We believe this issue will require significant management attention and increase costs, further reducing confidence in the outlook" - Morgan Stanley

** Stock rated "hold" on average by 12 analysts; their median PT is A$11 – according to data compiled by LSEG

** BEN rises 0.3% to A$10.22 after sliding 7.4% a day ago

** Stock down 22% YTD

(Reporting by Jasmeen Ara Shaikh in Bengaluru)

((Jasmeenaraislam.Shaikh@thomsonreuters.com;))