- 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.
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network issued an alert to financial institutions about their obligations to report deepfakes, warning artificial intelligence has given bad actors additional tools in their arsenal.
A nationwide rental outlet affiliated with Rent-a-Center and its chief executive have been sued by the Consumer Financial Protection Bureau for allegedly deceiving five million consumers about the terms of credit agreements.
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.
