Webull Fined $4.2 Million by Finra

Online retail brokerage Webull Financial LLC will pay a $4.2 million fine over allegations that it failed to implement anti-money laundering controls and protect against customer identity theft during its rapid growth. The Financial Industry Regulatory Authority (Finra) announced the decision on Thursday. According to Finra's statement, Webull did not adequately implement anti-money laundering (AML) controls during its platform's rapid growth and failed to take necessary protective measures against customer identity theft. The regulator found that these deficiencies created serious weaknesses in the brokerage's compliance processes. The fine is seen as a step toward strengthening Webull's compliance infrastructure and ensuring full compliance with regulatory requirements. Finra reminded brokerages of their legal obligations to verify customer identities and monitor suspicious transactions. Webull Financial LLC is known for its online trading platform for retail investors. The company is expected to make the payment under the penalty and review its compliance processes. Not investment advice.