Sanctuary Securities Review – Supervisory and Compliance Failures
Sanctuary Securities, Inc. (CRD #205 / SEC #8-2062), based in Chicago, Illinois, has faced multiple regulatory sanctions in recent years. FINRA disciplinary actions have raised concerns about the firm’s supervisory practices, disclosure failures, and anti-money laundering (AML) compliance.
Recent Regulatory Events
March 11, 2025 – FINRA AWC (AML Program Deficiencies)
FINRA sanctioned Sanctuary Securities for failing to establish and implement an adequate AML program. The firm’s customer identification procedures were weak, its guidance for suspicious activity reviews was lacking, and its due diligence was insufficient. Sanctuary Securities was censured, fined $150,000, and ordered to improve its supervisory systems.
March 11, 2025 – FINRA AWC (Duplicate Reporting)
On the same date, FINRA issued a parallel enforcement action tied to the AML failures. Sanctuary Securities again consented to a censure, $150,000 fine, and undertakings requiring certification of remediation.
September 2, 2022 – FINRA AWC (Failure to Disclose SEC Filing Delays)
FINRA determined that Sanctuary Securities negligently failed to notify investors in two private offerings that issuers had not timely filed audited financial statements with the SEC. Despite knowing about a forensic audit delay, the firm continued sales totaling $600,000 and collected $48,000 in commissions. FINRA censured the firm, imposed a $60,000 fine, and ordered $48,000 in restitution plus interest.
What This Means for Investors
Sanctions against Sanctuary Securities demonstrate a pattern of supervisory and compliance failures. For investors, these lapses may have contributed to unsuitable sales of private placements or other high-risk products. If you sustained financial losses while working with the firm, you may be eligible to seek recovery through FINRA arbitration, a process designed to help investors pursue claims against brokerage firms for misconduct or negligence.
Free Consultation
If you invested with Sanctuary Securities and have concerns about your portfolio, The White Law Group may be able to help you recover your losses. Our attorneys have represented investors in more than 800 FINRA arbitration claims nationwide.
For a free consultation with a securities fraud attorney, call (888) 637-5510 or visit us at whitesecuritieslaw.com.
Frequently Asked Questions – Sanctuary Securities
What violations has Sanctuary Securities been cited for?
FINRA found issues with the firm’s anti-money laundering (AML) program, disclosure of filing delays in private offerings, and overall supervisory weaknesses.
Does a FINRA sanction mean investors automatically get money back?
No. FINRA fines and penalties are paid to regulators. However, investors who lost money may pursue recovery separately through a FINRA arbitration claim.
What should I do if I lost money with Sanctuary Securities?
You should consult with a securities attorney to review your options. Depending on your situation, you may be able to file a claim for damages against the firm.
