Webull fined $4.2 million over compliance failures, FINRA says

FINRA has fined Webull Financial $4.2 million, saying the digital brokerage failed to put adequate safeguards in place against illicit finance and other compliance risks. The findings cover weaknesses in customer checks, suspicious transaction monitoring and ensuring trades were handled in customers’ interests.

The failures took place between January 2020 and September 2023. FINRA said Webull lacked reasonable procedures to verify customers’ identities when they opened accounts and to identify and flag suspicious transactions. Webull neither admitted nor denied the findings, and agreed to address the issues and hire an independent consultant.