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IPFS News Link • Central Banks/Banking

Banks hit with $549 million in fines for use of Signal, WhatsApp to evade regulators' reach

• CNBC

KEY POINTS

• U.S. regulators on Tuesday announced a combined $549 million in penalties against Wall Street firms that failed to maintain electronic records of employee communications.

• The Securities and Exchange Commission announced charges against 11 firms for "widespread and longstanding failures" to maintain records, including by allowing employees to use unsupervised side channels such as messaging apps WhatsApp and Signal, the regulator said.

• Wells Fargo was the biggest U.S. bank cited Tuesday in the sweeping actions.

U.S. regulators on Tuesday announced a combined $549 million in penalties against Wells Fargo and a raft of smaller or non-U.S. firms that failed to maintain electronic records of employee communications.

The Securities and Exchange Commission disclosed charges and $289 million in fines against 11 firms for "widespread and longstanding failures" in record-keeping, while the Commodity Futures Trading Commission also said it fined four banks a total of $260 million for failing to maintain records required by the agency.


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