FINRA fines Moors & Cabot for AML deficiencies

​Moors & Cabot, Inc has agreed to pay a $125,000 fine as part of a settlement with the Financial Industry Regulatory Authority (FINRA) over anti-money laundering (AML) deficiencies and customer disclosure violations. From at least January 2020 to May 2024, the firm failed to develop and implement an AML compliance program reasonably expected to detect and report suspicious transactions, including those involving money movements. Additionally, between June 2020 and March 2023, Moors & Cabot did not deliver Form CRS to 3,264 retail investors and lacked a supervisory system to ensure compliance with that obligation. FINRA determined that the firm willfully violated Section 17(a)(1) of the Securities Exchange Act of 1934 and Exchange Act Rule 17a-14, as well as FINRA Rules 3110 and 2010. Alongside the monetary penalty, Moors & Cabot has agreed to a censure. The firm, a FINRA member since 1936, is headquartered in Boston, Massachusetts, and employs 125 registered representatives across 22 branch offices, offering wealth management, financial planning, and investment advisory services.