Bank / Credit Union
Big banks hit with $1.8B fine for private messaging
September 28, 2022
The Securities and Exchange Commission has levied a dozen financial institutions with a $1.8 billion fine for allowing employees to use messaging apps to communicate with one another about work-related issues. It also found the banks were not keeping records of thee messages, according to a New York Times report.
The SEC found that from 2018 to 2021 bank employees, including managing directors and supervisors, were using WhatsApp or other apps to communicate rather than work emails or other official bank avenues of communication. Since banks are required to keep records of all communications, texting apps can pose a major issue.
In particular, Bank of America, Barclays, Citigroup, Goldman Sachs and Morgan Stanley will each pay $125 million in fines. This summer, JPMorgan Chase had to pay a $200 million fine as well.
"As technology changes, it's even more important that registrants appropriately conduct their communications about business matters within only official channels, and they must maintain and preserve those communications," Gary Gensler, chair of the SEC, said in a statement.
The SEC also said the banks will now bring in consultants to look at policies "relating to the retention of electronic communications found on personal devices."
