FINRA Fines Webull $4.2 Million Over Compliance Failures

FINRA fined Webull Financial LLC $4.2 million for anti-money laundering, identity theft prevention and best execution violations. The November 5 action highlights compliance gaps during rapid account growth. Webull settled without admitting or denying FINRA’s findings.

Identity Checks and Transaction Monitoring

FINRA found that Webull approved more than 120,000 accounts without reasonably verifying customer identities. Some applicants submitted landscape photographs instead of identification.

The firm also failed to identify or investigate 473 unauthorised ACH transfers involving over $1.5 million moved from other financial institutions into Webull accounts. This figure represents transfers, not confirmed unrecovered losses.

Execution Reviews and Remediation

Webull inadequately assessed execution quality at competing market centres and, at certain times, omitted reviews of non-marketable orders.

The firm must certify remediation of its AML and identity theft prevention deficiencies and retain an independent consultant for best execution.

The case illustrates why verification, monitoring and supervisory resources must keep pace with customer growth.

Investor Warning

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