FINRA Hits Webull With $4.2 Million Fine Over AML Gaps, Unverified Accounts and Best Execution Lapses
FINRA Hits Webull With $4.2 Million Fine Over AML Gaps, Unverified Accounts and Best Execution Lapses #
The Financial Industry Regulatory Authority has fined Webull Financial LLC $4.2 million for compliance failures in anti-money laundering controls, identity theft prevention and best execution obligations, the regulator announced on 5 November 2026.
FINRA’s settlement order found that Webull’s compliance infrastructure failed to keep pace with the platform’s rapid customer growth, with more than 120,000 accounts approved without adequate identity verification. The failures occurred primarily between January 2020 and September 2023, a period in which Webull expanded its user base across the United States.
On the AML front, regulators determined that Webull failed to detect and report a range of suspicious transactions. The firm did not identify or investigate 473 unauthorised automated clearing house transfers used to move more than $1.5 million from customers at other financial institutions into Webull accounts, according to the settlement order.
The regulator also cited best execution failures. FINRA found that at certain points between at least February 2020 and at least May 2025, Webull conducted no review of execution quality available at competing market centres. At other times, it obtained the relevant data but failed to review it sufficiently. Non-marketable limit orders, which could account for as much as 70 percent of the firm’s order flow during certain periods, were among those left without adequate quality review, according to the settlement.
Webull consented to the settlement without admitting or denying FINRA’s findings. Beyond the $4.2 million penalty, the firm has also agreed to certify that it has remediated the AML and identity theft prevention deficiencies and to retain an independent consultant to review and address its best execution programme.
The action is not Webull’s first encounter with FINRA. In 2025, the self-regulatory organisation censured the firm and issued a separate $1.6 million fine related to its supervision and record retention of influencer social media communications.
FINRA stated in the settlement announcement that Webull “failed to do so in fundamental areas, including verifying its customers’ identities, detecting suspicious activity and ensuring the best possible execution of customer trades.” The regulator said the 2026 Annual Regulatory Oversight Report contains additional guidance on its areas of concern related to AML and best execution practices.
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