Japan suspends Moomoo Securities over compliance failures

Japan’s FSA suspended Moomoo Securities from opening new accounts for three months due to compliance and AML failures, ordering stronger controls and a corrective plan.

Japan’s Financial Services Agency (FSA) has suspended Moomoo Securities for three months, barring the brokerage from soliciting or accepting new account applications from June 19 to September 18, 2026. This regulatory action follows significant compliance, anti-money laundering (AML), and cybersecurity failures, including the mislabeling of 78 non-NISA eligible U.S. investment products as tax-exempt assets. Authorities also identified deficiencies in suspicious transaction monitoring, stock transfer handling, and internal governance. In response, the FSA issued a business improvement order, requiring Moomoo Securities to enhance internal controls, clarify management responsibilities, and submit a corrective action plan by July 21. The enforcement comes after an investigation by the Securities and Exchange Surveillance Commission, which found that Moomoo expanded its services in Japan without establishing adequate compliance and risk management systems. The suspension is expected to impact the company’s growth and underscores heightened regulatory scrutiny in Japan’s retail investment sector.