LPL Financial Hit with $18M AML Fine: How GiGCXOs’ AML Audit Solution Can Prevent Compliance Failures
In January 2025 LPL Financial agreed to pay an $18 million civil penalty after the Securities and Exchange Commission found major deficiencies in its anti money laundering program. The SEC’s investigation determined that between May 2019 and December 2023 the firm failed to properly verify customer identities and did not close or restrict thousands of high risk accounts, including those tied to cannabis businesses and foreign entities, even though its own AML policies required such actions.
The case highlights the growing regulatory focus on how financial institutions manage their AML responsibilities. Regulators have stressed that firms must not only draft strong AML policies but also implement them consistently, since lapses in customer due diligence and transaction monitoring can open the door to illicit financial activity.
GiGCXOs is offering its AML Audit solution as a way for firms to strengthen their defenses before regulators step in. The program begins with a comprehensive risk assessment that evaluates exposure based on products, services, customer profiles, and geographic footprint. Policies and procedures are reviewed to ensure they align with the latest regulations and are applied across the organization. Customer due diligence programs are tested for effectiveness in identifying and monitoring clients, while transaction monitoring systems are evaluated for their ability to flag unusual behavior and support timely reporting. Training programs are also provided to keep staff up to date on evolving AML requirements and industry best practices.
Robust AML programs are no longer optional but essential to preserving the integrity and reputation of financial institutions. By adopting independent audits and reinforcing their compliance infrastructure, firms can avoid costly penalties and demonstrate to regulators that they take their responsibilities seriously. GiGCXOs argues that its AML Audit solution delivers a full spectrum of oversight, allowing firms to operate with greater confidence while protecting themselves from the risks that caught up with LPL Financial.
For more information on how GiGCXOs can support your firm's AML compliance efforts, please visit our website or contact our compliance specialists directly.
