FINRA imposes $335k fine on Prime Number Capital

Prime Number Capital LLC has agreed to pay a $335,000 fine and accepted a censure to settle charges brought by the Financial Industry Regulatory Authority (FINRA). The settlement also requires the firm to retain an independent consultant.

According to FINRA, from January 2021 onward, Prime Number failed to establish and implement a reasonably designed anti-money laundering program to detect and report suspicious transactions and failed to conduct reasonable testing of its AML program. This violated FINRA Rules 3310(a), 3310(f)(ii), 3310(c), and 2010.

Separately, from July 2020 to December 2024, the firm failed to supervise or preserve its registered representatives' business-related communications on unapproved platforms, breaching the Securities Exchange Act and FINRA Rules. Additionally, from September 2020 to October 2025, it failed to timely file required documentation for its IPO underwriting activities, violating FINRA Rules 5110 and 2010.

Prime Number Capital became a FINRA member in December 2018. The New York-headquartered firm has eight registered representatives and two branch offices. Its investment banking services include underwriting initial public offerings, often for small-cap foreign issuers.