LPL Financial paid $18 million over longstanding anti-money-laundering failures

Summary

The U.S. Securities and Exchange Commission charged LPL Financial LLC in January 2025 with multiple failures in its anti-money-laundering compliance program. According to the SEC, from at least May 2019 through December 2023 LPL had longstanding deficiencies in its customer identification program. The SEC found that LPL failed to timely close accounts in circumstances where the identities of customers had not been properly verified. LPL also failed to close or restrict thousands of high-risk accounts. These included cannabis-related accounts and certain foreign accounts that were prohibited under LPL's own anti-money-laundering policies. The SEC concluded that LPL willfully violated federal securities-law requirements governing broker-dealer anti-money-laundering programs. Without admitting or denying the SEC's findings, LPL agreed to a censure and cease-and-desist order. The company also agreed to compliance undertakings intended to address the deficiencies and paid an $18 million civil penalty. Primary source: U.S. Securities and Exchange Commission — LPL Financial to Pay $18 Million for Anti-Money Laundering Program Failures: https://www.sec.gov/newsroom/press-releases/2025-17