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- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By Jaclyn Jaeger2022-08-24T12:00:00
U.S. financial regulators have signaled through an impending widespread enforcement sweep against Wall Street banks they are zeroing in on employees’ unapproved uses of electronic communication channels to discuss business-related matters. Collectively, the cases emphasize the need for financial services firms to enhance their monitoring and recordkeeping obligations.
Bank of America, Barclays, and Morgan Stanley are among more than a handful of banks to have disclosed agreements to pay as much as $200 million concerning employees’ business communications on unapproved messaging platforms and recordkeeping failures. The fines are expected to be announced by the end of the government’s fiscal year on Sept. 30, according to a report from the Wall Street Journal. Other banks ensnared in the crackdown include Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, and UBS.
Firms cannot realistically prevent all employees from using unapproved channels to communicate off-book securities business matters. “What firms can do is set up reasonable supervisory systems to catch it,” said John Lukanski, a partner at law firm Reed Smith.
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2022-11-10T18:25:00Z By Aaron Nicodemus
Three private equity firms have disclosed they are under investigation by the Securities and Exchange Commission (SEC) for having allowed employees to use unauthorized communication channels like WhatsApp and WeChat to conduct company business.
2022-09-28T18:39:00Z By Aaron Nicodemus
Eleven banks, investment firms, and their affiliates will pay a total of more than $1.8 billion in fines for “widespread and longstanding failures” in monitoring, maintaining, and preserving electronic communications by employees.
2022-08-25T17:47:00Z By Aaron Nicodemus
Monique Thacker, a current HSBC Bank USA executive, claimed in a federal lawsuit she was discriminated and retaliated against for raising regulatory violations involving unauthorized communications by bank employees that were downplayed or ignored by management.
2024-07-26T19:18:00Z By Jeff Dale
RTX Corp., the parent company of Raytheon, disclosed in a public filing it has reserved $1.24 billion to resolve legacy legal matters with the Department of Justice, Securities and Exchange Commission, and Department of State.
2024-07-26T15:51:00Z By Aaron Nicodemus
The U.K. Financial Conduct Authority issued a fine of $4.5 million (3.5 million pounds) against a U.K.-based subsidiary of crypto platform Coinbase for providing services to high-risk customers in violation of FCA rules.
2024-07-26T13:36:00Z By Adrianne Appel
Admera Health agreed to pay more than $5.5 million to resolve allegations first brought by two whistleblowers that it paid kickbacks to third-party contractors, the Department of Justice said.
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