SEC fined banks for transmitting information via WhatsApp, iMessage and Signal – Kommersant

Today, August 8, the US Securities and Exchange Commission (SEC) reportedthat 11 financial institutions, including the investment divisions of American Wells Fargo and French BNP Paribas, were fined $289 million for violating the rules for the transfer and storage of proprietary information. Since 2019, bank employees have reportedly been exchanging proprietary information on a regular basis via WhatsApp, iMessage, and Signal without retaining those proprietary communications for regulatory review, as required by SEC rules.

“Our decision today is based on the fact that the entities we regulate, including brokerage firms and investment advisors, must comply with established data retention rules that are necessary for control under federal laws,” said the SEC Deputy Director for Compliance. Acts of Sanjay Wadhwa. — The 11 companies mentioned today admitted that their actions were in conflict with important requirements of the laws. The companies also promised to eliminate the violations committed and prevent the recurrence of this in the future.”

Also today, August 8, the Commodity Futures Trading Commission (CFTC) reported to impose a $260 million fine on Wells Fargo, Canadian Bank of Montreal, and French BNP Paribas and Societe Generale for violations related to the transfer and storage of proprietary information using third-party communication channels such as WhatsApp. The CFTC noted that since December 2021, it has already fined 18 financial companies for a total of $ 1 billion for such violations in the transfer of proprietary information.

Evgeniy Khvostik