Webull fined $4.2 million over compliance failures, FINRA says

On November 5, the Financial Industry Regulatory Authority announced it had imposed a $4.2 million fine on Webull Financial. The regulator cited failures in implementing programs to prevent illicit activities such as money laundering and identity theft. Between January 2020 and September 2023, Webull allegedly did not establish reasonable policies for customer identity verification during account sign-ups.

Moreover, the firm reportedly lacked procedures to detect and flag suspicious transactions. Additionally, Webull failed to put in place a program to ensure customer transactions were conducted in their best interest. The company remained silent on the matter, not admitting nor denying the regulator's findings. In the settlement, Webull agreed to address the identified issues and hire an independent consultant.