Webull Fined $4.2 Million Over Customer Verification and…
By Abdelaziz Fathi
AI summary of the source article
FINRA has fined Webull Financial LLC $4.2 million over deficiencies in anti-money laundering controls, identity theft prevention, and best execution. Webull agreed to settle without admitting or denying the findings and must hire an independent consultant to review its compliance.
Why it matters
The findings are particularly relevant because Webull received payment for order flow during the period covered by the case.
Key facts
- FINRA fined Webull Financial $4.2 million over AML, identity theft prevention, and best execution failures from 2020 into 2025.
- Webull approved over 120,000 accounts without verifying identities, including accepting landscape photos instead of IDs and approving accounts of deceased individuals.
- The firm failed to investigate 473 unauthorized ACH transfers exceeding $1.5 million and did not conduct adequate best execution reviews.
Source excerpt · FinanceFeeds
FINRA has fined Webull Financial LLC $4.2 million over failures in anti-money laundering controls, identity theft prevention and best execution, finding that the broker’s compliance systems did not keep pace with the rapid growth of its U.S. business. The November 5 settlement covers conduct stretching from 2020 into 2025. FINRA said Webull opened millions of customer accounts during its fastest g…