- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-01-09T18:09:00
A new report from the Financial Industry Regulatory Authority (FINRA) provides insights and observations from examiners on emerging issues affecting the industry, including surveilling potential use of off-channel communications by employees, crypto-asset developments, cybersecurity trends, and more.
Released Tuesday, the 2024 FINRA Annual Regulatory Oversight Report, formerly known as the Report on FINRA’s Examination and Risk Monitoring Program, also provides guidance to member firms on implementing robust anti-money laundering, fraud, and sanctions screening programs and supervising issues related to the Securities and Exchange Commission’s (SEC) Regulation Best Interest and Form CRS regulations.
In the report, FINRA said it uses a “risk-based approach to review how firms capture, surveil, and maintain business-related communications.” In addition to policies and procedures to monitor potential new electronic communication channels available to customers and firm employees, FINRA examiners will ask how firms surveil their employees for potential off-channel communications use.
Those questions include:
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The Commodity Futures Trading Commission announced settlements with U.S. Bank and Oppenheimer & Co. for admitted recordkeeping and supervision failures regarding employee use of off-channel communications for conducting business.
The Department of Justice and Federal Trade Commission updated language contained in standard preservation letters regarding the maintaining of business communications made via collaboration tools and ephemeral messaging apps.
The Financial Industry Regulatory Authority announced it uncovered potential violations of its disclosure rules in 70 percent of crypto asset communications reviewed during a targeted exam.
A lack of risk visibility is causing companies to reject customers–and potentially lose money–over fears they might be in danger of violating rules around anti-money laundering and sanctions regulations.
The Treasury Department’s Financial Crimes Enforcement Network updated an alert first issued in February warning financial institutions of Israeli extremists fomenting violence in the West Bank.
A Bank of England report warned of private equity risk management deficiencies as interest rates remain stagnant, with international coordination important.
