SEC $18 Million Order Against LPL Financial

The SEC issued an $18 million penalty against LPL Financial for repeated violations of anti-money laundering (AML) regulations, specifically concerning its Customer Identification Program (CIP) and ongoing customer due diligence (CDD). LPL failed to properly verify accounts, timely close accounts failing CIP screening, and consistently comply with its own AML policies regarding prohibited accounts (e.g., cannabis-related and foreign accounts). This action follows previous AML-related penalties against LPL and represents the SEC's third such penalty in 2025, highlighting a firm stance on AML compliance. A secondary source comments on the SEC's actions, emphasising the importance of robust QX processes and data management for AML compliance within financial firms, especially in light of upcoming AML program requirements. The SEC's actions are interpreted as a warning to other investment firms🎧 Tune in now for expert insights and get actionable strategies for your organization. Follow The Compliance Officers Playbook show/page and tap the (🔔) for 𝐝𝐚𝐢𝐥𝐲 𝐜𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐢𝐧𝐬𝐢𝐠𝐡𝐭𝐬, 𝐭𝐫𝐞𝐧𝐝𝐬, 𝐚𝐧𝐝 𝐦𝐨𝐫𝐞. If you enjoyed this episode, we’d love to hear from you! Follow us to stay updated on future episodes, and don’t forget to leave a review and rating ⭐️⭐️⭐️⭐️⭐️Your feedback helps us improve and reach more listeners like you. Thank you for your support! ❤️🙏

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