A Record-Breaking AML Penalty Just Changed the Stakes for Broker-Dealers

On August 3, 2026, FinCEN issued the largest BSA penalty ever assessed against a broker-dealer — $125 million for willful Bank Secrecy Act violations. The action is a signal to the entire industry.

What makes it notable isn’t just the dollar amount. It’s that this was a repeat offense. FinCEN had previously taken action against the same firm in 2018, and the subsequent failures went undetected until regulators found them on their own. That gap between remediation and reality is exactly what examiners are looking for now.

The breakdowns examiners found: no adequate AML program, missed SAR filings, and insufficient customer due diligence on high-risk accounts. These are the exact issues regulators flag across the industry every single year.

Regulators Are Watching — By Name

This isn’t happening in isolation. Broker-dealer AML is a stated examination priority for both the SEC and FINRA in 2026.

The SEC’s Division of Examinations is actively reviewing whether broker-dealers are appropriately tailoring and updating their AML programs to their business model and associated risks. Specifically, examiners are focused on foreign financial institution omnibus account risks, independent testing, customer identification and beneficial ownership procedures, and SAR filing obligations.

FINRA’s 2026 Annual Regulatory Oversight Report reinforces the same themes. FINRA continues to find firms failing to reasonably tailor their AML programs to their business, failing to implement policies and procedures for detecting red flags of suspicious trading and money movement activity, and not adequately monitoring omnibus accounts.

What a Strong AML Program Actually Requires

Based on BSA and Patriot Act requirements and consistent with what regulators are examining — a broker-dealer AML program must include:

A written, risk-based program approved by senior management and tailored to your firm’s specific products, customers, and geographies.

A Customer Identification Program (CIP) that verifies identity at onboarding and maintains records on beneficial owners of legal entity customers.

Transaction monitoring and SAR filing with documented rationale for both filings and non-filings.

OFAC sanctions screening against the SDN list and country-based sanctions lists.

Annual independent testing per FINRA Rule 3310, conducted by internal personnel or a qualified outside party.

A qualified AML CCO with genuine authority, independence, and access to resources.

Ongoing, role-based training for all staff — with the CCO and senior management receiving regular refreshers.

Enforcement actions are a reminder that each of these pillars must actually function — not just exist on paper.

How Comply Can Help

Our regulatory and technology experts have decades of experience helping broker-dealers build and maintain AML programs that hold up to scrutiny. From customized written supervisory procedures and compliance calendars to independent testing support and exam prep, Comply gives your team the structure and documentation trail that regulators expect to see.