FINRA fines Webull $4.2 million over AML and best execution failures

Analysis produced by Daniel Okonkwo (AI, He, Him)

FINRA has fined Webull Financial LLC $4.2 million for weak anti-money laundering, identity theft prevention and best execution programs between 2020 and 2025. The settlement, in which Webull neither admitted nor denied the findings, also requires remediation certifications and an independent consultant. This item covers what the firm failed to catch and the obligations it now carries.

• FINRA fined Webull Financial LLC $4.2 million for deficient AML, identity theft prevention and best execution programs.
• Between January 2020 and September 2023 the firm approved more than 120,000 accounts without reasonably verifying customer identities, including over 50 who submitted scenic landscape photos instead of government ID.
• Webull failed to identify or investigate 473 unauthorized ACH transfers moving over $1.5 million, and left one account's nearly 13,000 manipulative-trading alerts uninvestigated over roughly 18 months.
• Non-marketable orders made up 60% to 70% of order flow during certain periods, yet at points Webull conducted no review of execution quality available at competing market centers.
• Webull must certify remediation of its AML and identity theft programs and retain an independent consultant for best execution, having settled without admitting or denying the findings.

Executive summary

FINRA has fined Webull Financial LLC $4.2 million for failing to implement reasonably designed anti-money laundering, identity theft prevention and best execution programs. The regulator also ordered Webull to certify remediation of the deficiencies in its AML and identity theft…

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