Do you use Signal or WhatsApp to discuss banking activities? It’s an app that’s noticeably popular with some employees of several banks, notably Société Générale and BNP Paribas. It just doesn’t really please the SEC and the CFTC, major US financial market regulators.
Indeed, the two entities chose to sanction two French banks, as well as a few others, such as the Bank of Montreal or Wedbush Securities, for serious violations of communication and information storage rules. In total, Société Générale and BPN Paribas were sentenced to prison. pay each of them $110 million.
Especially high penalties
Specifically, these sanctions are “the widespread and long-standing failure of companies and their employees to retain and retain electronic communications. Compliance with the bookkeeping and recording requirements of federal securities laws is essential to the protection of investors and the smooth functioning of markets.” reminds the SEC in a press release.
Note that this case is not new. Indeed, the SEC has been fighting since 2019 to punish banking institutions guilty of these serious security and privacy breaches. Nowadays, The SEC has initiated at least thirty legal actions and imposed more than 1.5 billion dollar fine. With 18 actions initiated and nearly a billion dollars in fines, the CFTC cannot be left behind.
Credit: Arstechnica
