US financial regulators are intensifying their scrutiny of how firms monitor and archive employee communications on unauthorized messaging platforms, according to industry sources. The crackdown comes amid concerns that the widespread use of apps like WhatsApp for business discussions could enable misconduct to go undetected.
Key developments include:
- The SEC and CFTC have reportedly launched a coordinated sweep of major banks and asset managers
- Regulators are seeking detailed information on policies, monitoring practices, and any violations identified
- Firms face potential fines and remediation requirements if found to have inadequate controls
- Some companies are exploring new technology solutions to capture off-channel communications
The heightened focus presents significant compliance challenges for financial institutions. Many employees have grown accustomed to using personal devices and messaging apps for work, especially with the rise of remote work. However, firms are required to maintain records of business communications under various regulations.
Compliance experts advise companies to review and strengthen their policies, enhance employee training, and consider implementing technical controls to mitigate risks. As the regulatory landscape evolves, firms will need to balance productivity and flexibility with robust oversight of electronic communications.
References:
- https://www.skillcast.com/blog/compliance-news-march-2025
- https://www.ul.com/resources/global-market-access-regulatory-news-update
- https://www.law360.com/compliance/news?ab_exp_id=nl_subject&ab_exp_var=a&nl_pk=23de5504-3502-4043-9031-bc0e3895fcce&page=5
- https://www.mayerbrown.com/en/insights/publications/2025/03/europe-daily-news/europe-daily-news-mar2725
- https://www.grantthornton.co.uk/insights/your-guide-to-this-week-in-regulation/
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- https://www.jdsupra.com/legalnews/daily-compliance-news-march-26-2025-t-45331/
- https://www.berrydunn.com/news-detail/shifting-from-denials-management-to-denials-prevention-5-steps-for-success
- https://www.jdsupra.com/legalnews/daily-compliance-news-march-25-2025-t-65311/
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- https://www.assp.org/news
