Tr?id=566623520170033&ev=PageView&noscript=1

ÍøÆØ³Ô¹Ï

SEC Charges LPL Financial with Anti-Money Laundering Failures

Posted on February 7th, 2025 at 9:21 AM
SEC Charges LPL Financial with Anti-Money Laundering Failures

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï

The Securities and Exchange Commission (SEC) has charged LPL Financial LLC, a broker-dealer and investment adviser, with multiple violations of anti-money laundering (AML) regulations. According to SEC.gov, LPL has agreed to pay a $18 million civil penalty and improve its AML policies and procedures to settle the charges.

The SEC’s order states that between May 2019 and December 2023, LPL failed to comply with its customer identification program and neglected to verify the identities of certain customers. SEC.gov also reports that LPL failed to close or restrict thousands of high-risk accounts, including cannabis-related and foreign accounts, despite their prohibition under the firm’s AML policies.

“Federal law requires broker-dealers to ascertain the identity of their customers and to conduct ongoing customer due diligence to aid the government in its efforts to detect and prevent money laundering,” said Stacy Bogert, Associate Director of the SEC’s Division of Enforcement. “When broker-dealers like LPL fail to comply with their AML obligations, they put the securities markets at risk.”

The SEC found that LPL willfully violated Section 17(a) of the Securities Exchange Act of 1934 and Rule 17a-8 under the Act. Without admitting or denying the SEC’s findings, LPL agreed to a cease-and-desist order, censure, and the $18 million penalty. Additionally, the firm will continue working with a compliance consultant to review and enhance its AML policies and procedures.

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I just wanted to say thanks again for preparing and executing my case in such a professional manner. It was a pleasure to watch two professionals take such pride in their work, as well as becoming personally in tune with your client (Me). I would personally recommend you and your firm to anyone.

John O.

LATEST NEWS AND ARTICLES

1778000603 Law
May 5, 2026
Commonwealth Financial Network Resolves SEC Conflict of Interest Case

Commonwealth Financial Network has agreed to pay $5 million to resolve a long-standing conflict of interest case brought by the Securities and Exchange Commission, according to reporting by ThinkAdvisor.

1777908810 Law
May 4, 2026
KKR Limits Redemptions in Private Credit Fund Amid Rising Investor Withdrawals

KKR & Co.

1777663103 Law
May 1, 2026
Former Texas Advisor Pleads Guilty in Multi-Million Dollar Ponzi Scheme

A former financial advisor and media personality in San Antonio has admitted to defrauding clients in a large-scale Ponzi scheme involving hundreds of investors and millions of dollars, according to reporting by Financial Advisor News.