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- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By Aaron Nicodemus2022-09-28T18:39:00
In an enforcement sweep against off-channel electronic communications at financial institutions regulators warned was coming, 11 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.
The Securities and Exchange Commission (SEC) fined the firms more than $1.1 billion total, while the Commodity Futures Trading Commission (CFTC) levied another $711 million in penalties Tuesday. The agencies concluded that, collectively, the firms did not reign in off-channel communications by employees from 2018-21.
Specifically, the two regulators found systemic use of off-channel electronic communications by company employees on business-related topics conducted on personal cell phones, messaging apps, and other channels. These messages were not captured, recorded, and stored by the firms, as required by the SEC’s and CFTC’s recordkeeping, books and records, and supervision requirements for market participants.
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2024-02-09T17:00:00Z By Compliance Week
The Securities and Exchange Commission and Commodity Futures Trading Commission have combined to levy about $2.8 billion in penalties (so far) against firms and their affiliates in response to recordkeeping failures regarding employee use of off-channel communications for business purposes.
2023-08-09T15:10:00Z By Aaron Nicodemus
The Securities and Exchange Commission and Commodity Futures Trading Commission have indicated they will be more forgiving to financial services firms that voluntarily self-report recordkeeping violations and take remedial actions before being asked to do so.
2023-07-25T20:24:00Z By Aaron Nicodemus
Stockholder lawsuits have emerged as the latest aftershock from the regulatory crackdown against banks and financial services firms for allowing off-channel business communications by their employees.
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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