FINRA Fines Osaic Institutions $650,000 for AML Program Deficiencies
By Staff
Osaic Institutions, Inc., formerly known as Infinex Investments, Inc., has been fined $650,000 and censured by the Financial Industry Regulatory Authority following multiple violations tied to its anti-money laundering compliance program. The regulatory action follows a routine FINRA examination that uncovered failures spanning more than three years, during which the firm did not adequately detect or report suspicious transactions as required under the Bank Secrecy Act and applicable FINRA rules.
The disciplinary letter, formally known as a Letter of Acceptance, Waiver, and Consent, outlines that between September 2021 and December 2024, the firm’s AML policies lacked the structure and specificity necessary to flag and escalate suspicious activity. FINRA found that Osaic Institutions relied on generic, template-based procedures that did not account for the firm’s specific business model or risk profile.
The Meriden, Connecticut-based firm – acquired by Advisor Group (now Osaic Wealth, Inc.) in 2022 – operates approximately 950 branch offices with 730 registered representatives, offering brokerage services to retail clients in the U.S. and abroad, including in Argentina, Bolivia, and Mexico.
During the review period, Osaic maintained more than 310,000 customer accounts and facilitated over 185,000 securities transactions, 130,000 securities movements, and 400,000 money movements. Despite this scale, the firm utilized only a limited number of exception reports to monitor activity, failing to screen for key red flags such as third-party wires, high-risk jurisdictions, or large currency transfers. FINRA reported that in some cases, critical surveillance reports were reviewed more than 24 weeks late – or not at all.
The letter also highlights that the firm did not meet its obligations for ongoing customer due diligence. Prior to December 2023, Osaic had not developed customer risk profiles for domestic clients and designated all foreign clients as high-risk without further stratification. No formal risk-based monitoring was conducted for either group over the three-year period.
In addition to the monetary fine and censure, FINRA is requiring Osaic Institutions to certify, within 60 days, that it has remediated the AML deficiencies identified in the letter. The certification must be signed by a senior manager who is a registered principal and include narrative evidence and supporting documentation.
The letter was accepted by FINRA’s Office of Disciplinary Affairs on December 22, 2025, and the sanctions will take effect on a date to be determined by the regulator.
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