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- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By Aaron Nicodemus2023-07-25T20:24:00
Blowback from the large fines levied against banks and financial services firms for allowing off-channel business communications by their employees continues to reveal itself in varying ways.
The issue gained widespread attention as part of a regulatory crackdown by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), who combined to issue $2 billion worth of penalties against a dozen of the world’s largest financial institutions between December 2021 and September 2022.
The regulators said they identified “widespread and longstanding failures” in monitoring, maintaining, and preserving electronic communications by employees at JPMorgan Chase, Goldman Sachs, Citi, Bank of America, Barclays, Credit Suisse, Deutsche Bank, Morgan Stanley, and UBS, among others.
Another round of smaller fines against HSBC and Scotiabank for similar misconduct was announced by the regulators in May.
The latest aftershock from the crackdown has been stockholder lawsuits.
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News and analysis for the well-informed compliance or audit exec.
Annual Membership best value
Subscribe now for $365
Our lowest price ($1 per day) for one year.
2023-11-16T17:00:00Z By Aaron Nicodemus
Establishing a set of policies and procedures to prevent employee use of nonauthorized electronic communications to conduct business is relatively straightforward. The hard part is monitoring compliance.
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.
2023-08-08T15:48:00Z By Kyle Brasseur
The Securities and Exchange Commission and Commodity Futures Trading Commission continued their crackdown on financial firms’ recordkeeping failures regarding employee use of off-channel communications with $555 million in total fines levied against nine institutions and their affiliates.
2024-06-28T19:30:00Z By Jeff Dale
A Bank of England report warned of private equity risk management deficiencies as interest rates remain stagnant, with international coordination important.
2024-06-20T15:40:00Z By Aaron Nicodemus
Compliance departments at financial institutions must become more involved in ensuring their firm’s operational resiliency to address emerging risks, the Treasury Department’s Office of the Comptroller of the Currency said in its semi-annual risk perspective.
2024-06-07T22:34:00Z By Adrianne Appel
Compliance has been “sleeping on” artificial intelligence, two panelists discussed at Compliance Week’s Women in Compliance Summit. The profession should be positioned to lead on AI governance at the business level.
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