Webull Financial has been fined $4.2 million by the Financial Industry Regulatory Authority (FINRA) for significant failures in its compliance programs. FINRA found that the firm’s anti-money laundering (AML), identity theft prevention, and best execution systems failed to keep pace with its rapid expansion between January 2020 and September 2023.
Webull approved more than 120,000 customer accounts without reasonably verifying customers’ identities. In some cases, it approved accounts for people flagged as deceased.
The firm also failed to detect and report numerous suspicious transactions, including unauthorized transfers. Webull agreed to review and remediate its compliance programs and hire an independent consultant to address deficiencies in its best execution practices. The firm neither admitted nor denied FINRA’s findings.