Nov 5 : The Financial Industry Regulatory Authority, Wall Street's industry regulator, said on Thursday it fined Webull Financial $4.2 million for failing to implement programs aimed at preventing illicit finance and other issues.
• Between January 2020 and September 2023, the digital brokerage did not implement reasonably designed programs to prevent money laundering and identity theft, FINRA said.
• The firm did not have reasonable policies in place, for example, to verify customer identities when they signed up for accounts, FINRA said.
• Webull also did not establish policies and procedures to detect and flag suspicious transactions, FINRA said.
• The firm also failed to institute a program to make sure customer transactions were done in the best way for the customers, FINRA said.
• Webull, which did not admit or deny FINRA's findings, did not respond immediately to requests for comment.
• As part of the settlement, Webull has agreed to remediate issues and hire an independent consultant.