U.S. regulators are investigating Charles Schwab Corp and Bank of America Corp's Merrill Lynch brokerage over whether they are doing enough to police their clients' identities, two sources said.

The U.S. Securities and Exchange Commission is probing Charles Schwab and Merrill Lynch for violations of anti-money laundering rules that require the brokerages to know their customers, the sources said.

A spokesman for the SEC declined to comment. Spokespeople for Schwab and Merrill did not immediately respond to a request for comment

This story is developing. Please check back for further updates.

for the latest on the markets.