FINRA fines Webull $4.2 million over anti-money laundering and best execution failures

FINRA announced on November 5 that it has fined Webull Financial LLC $4.2 million for failing to run reasonably designed programs for anti-money laundering, identity theft prevention and best execution. Webull consented to the findings without admitting or denying the charges.

FINRA tied the case to the broker’s growth between January 2020 and September 2023, when it opened millions of new customer accounts each year. “Webull’s business grew rapidly, but its compliance program did not keep pace,” said Bill St. Louis, FINRA’s head of enforcement.

Accounts and suspicious activity

According to FINRA, Webull approved more than 120,000 accounts in that period through third-party identity verification vendors without forming a reasonable belief about who those customers were. More than 50 customers submitted photos of scenic landscapes instead of government identification and were still approved. Other accounts were approved despite information in Webull’s own systems indicating the customer had died.

FINRA also says the firm failed to identify or investigate 473 unauthorized ACH transfers that moved over $1.5 million from customers at other institutions into Webull accounts. One account triggered nearly 13,000 alerts for potentially manipulative trading in more than 100 stock symbols during the approximately 18 months it was open, without a timely investigation. Webull had no process to identify potentially suspicious out-of-the-money options trading, according to the release.

Best execution

Webull received payment for order flow from at least February 2020. FINRA found that at certain points between then and at least May 2025 the firm conducted no review of execution quality available at competing market centers. At certain points it also did not review non-marketable orders, which made up 60% to 70% of its order flow during certain periods.

What it means for customers

The case concerns the firm’s supervisory systems, and the release doesn’t report any restitution order. For how brokers route orders and get paid for them, see our guide to payment for order flow. FINRA’s BrokerCheck is the place to see a broker’s regulatory record; our guide on how to check a broker’s license explains the steps.

What happens next

Webull agreed to certify that it has fixed the deficiencies in its anti-money laundering and identity theft programs, and to retain an independent consultant to address its best execution program. FINRA fined the firm $1.6 million in 2025 over its supervision of social media influencers who promoted it.