Moors & Cabot, Inc. (CRD 594) is a brokerage firm based in Boston, Massachusetts. FINRA censured and fined the firm $125,000 after finding it failed to develop and implement an anti-money laundering compliance program reasonably expected to detect and report suspicious transactions, according to an AWC issued August 24, 2026.
The firm consented to the sanctions without admitting or denying the findings.
FINRA found that Moors & Cabot used an AML surveillance system that did not include alerts for structuring or money movements other than outgoing wire transfers, even though the firm's money movement volumes created risk for potential structuring or layering. After FINRA alerted the firm to the issue, it activated additional surveillance alerts, the findings state.
The firm's AML policies and review practices also led to unreasonable reviews of the alerts its system did generate, according to the AWC. Policies required prompt review of AML alerts, but numerous alerts went unreviewed for over a month, and most alerts that were reviewed were closed within seconds without apparent inquiry, FINRA found.
The findings state that the firm had notice of problems with its AML reviews. Independent AML testing identified concerns in multiple reports about insufficient and untimely reviews, but the firm did not address those deficiencies, according to FINRA.
As a result, multiple potentially suspicious money movements by a firm customer, who transferred funds from a business account to a trust account and then to a foreign currency exchange, received no apparent review to confirm a lawful business purpose, the AWC states. Moors & Cabot later revised its AML policies and provided updated training to personnel, according to FINRA.
FINRA also found that Moors & Cabot willfully violated Exchange Act Section 17(a)(1) and Rule 17a-14 by failing to deliver Form Customer Relationship Summary to certain retail customers. The firm's clearing firm delivered Form CRS to customers whose transactions it cleared, but the firm did not deliver the form to retail customers whose transactions were not cleared through that firm, the findings state.
The firm conducted no supervisory reviews to confirm it was meeting its Form CRS delivery requirements, according to the AWC. Moors & Cabot later remediated the issue, FINRA found.
BrokerCheck shows an earlier, separate matter also dated August 24, 2026 (FINRA Case 2022073341601), in which Moors & Cabot consented to findings that it failed to develop and implement an AML compliance program reasonably expected to detect and report suspicious transactions. A 2020 matter (FINRA Case 2014042444001) found that the firm failed to disclose roughly $7.5 million in compensation it earned on trades in preferred securities, acting in a principal capacity by purchasing shares from one customer and selling them the same day to another, according to BrokerCheck.
FINRA censured Moors & Cabot and fined the firm $125,000 in the 2026 matter, the sanction recorded in the August 24, 2026 AWC.
FINRA member firms must supervise the activities of their brokers. If you have questions about an account that Moors & Cabot handled, call Soreide Law Group at (888) 760-6552. You can also reach us online to speak with a securities attorney. Our securities lawyers handle FINRA arbitration claims on a contingency fee basis. Learn how FINRA arbitration works.
This post summarizes public FINRA records, including BrokerCheck, as of October 14, 2026. In a FINRA Letter of Acceptance, Waiver and Consent, the respondent settles without admitting or denying the findings. FINRA may also update or correct these records after that date.
Moors & Cabot, Inc. (CRD 594) is a brokerage firm based in Boston, Massachusetts. FINRA censured and fined the firm $125,000 after finding it failed to develop and implement an anti-money laundering compliance program reasonably expected to detect and report suspicious transactions, according to an AWC issued August 24, 2026.
Cowen and Company, LLC (CRD 7616), now part of TD Securities (USA) LLC, is a brokerage firm based in New York, New York. FINRA censured and fined the firm a total of $80,000, of which $40,000 is payable to FINRA, according to an AWC issued August 19, 2026.
Webull Financial LLC (CRD 289063) is a brokerage firm based in New York, New York. FINRA censured and fined the firm $115,000 after finding it maintained inaccurate books and records of options order origin codes, according to an AWC issued August 17, 2026.
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