December 19, 2021 10:57 GMT
Financial institutions are required to keep records of customers’ communications so that regulators can verify whether they are violating anti-fraud or antitrust laws.
JPMorgan Chase, one of the largest companies on Wall Street, was fined $200 million this week for allowing its employees to use personal devices to communicate with customers.
according to Research Securities and Exchange Commission, US Commodity Futures Trading Commission (CFTC), JPMorgan a favour that since at least 2015 its employees have exchanged information on business matters through text messages, WhatsApp messages, and emails.
The two bodies responsible for the investigation confirmed that even directors and other JPMorgan executives evaded control by using messaging services and private email addresses.
These actions are a violation of federal law, which requires all financial institutions to keep records of customer communications so that regulators can check whether companies are violating anti-fraud or antitrust laws.
The bank will have to to pay The Securities Exchange Commission was charged $125 million, while the CFTC imposed another fine on JPMorgan for a total of $75 million. The bank’s securities department acknowledged the widespread record-keeping failure and agreed to pay the fee, but did not comment further.