The Securities and Exchange Commission (SEC) has issued $549 million in fines to banks that used texting apps such as WhatsApp, iMessage and Signal to communicate with clients
A number of banking institutions were fined by the SEC, including Wells Fargo, the Bank of Montreal, BNP Paribas and Société Générale.
SEC Deputy Director of Enforcement Sanjay Wadhwa issued a statement, saying, in part, “Recordkeeping failures such as those here undermine our ability to exercise effective regulatory oversight, often at the expense of investors.”
Commodity Futures Trading Commission (CFTC) Enforcement Director FIan McGinley added, “Registrants that fail to comply with these core regulatory obligations do so at their own peril.” In fact, several of the financial institutions that were fined are smaller banks, proving that all banks — not just Wall Street heavyweights — ought to be considering their business messaging practices.
Recordkeeping is the core of these messaging app fines. To achieve and maintain regulatory compliance, banks are required to retain certain documents and data, including text messages with clients. These messages must be retained for a minimum period of 3 years. But instant messaging platforms like WhatsApp, Signal and iMessage do not allow for compliance-friendly data retention and data exports.
According to federal regulators at the SEC, all of the involved banking institutions admitted to conduct that “violated recordkeeping provisions of the federal securities laws.”
A Regulatory Compliant Instant Messaging App for Banks
This news comes on the heels of nearly $2 billion in fines which were issued to 11 banking institutions in 2022 by the SEC and the CFTC. Like this most recent round of fines, the SEC cited a failure to “maintain and preserve” official communications.
Based in Dallas, 7T has developed a compliance-friendly instant messaging app called SayHey Messenger®. SayHey Messenger® allows users to retain and export their messaging data. SayHey Messenger® offers full data sovereignty , data encryption and real-time data auditing capabilities — exactly what a bank needs so that they can rest assured that their electronic communications will be fully secure and compliant.
SayHey Messenger® is designed with highly regulated industries in mind. Banks are empowered with a variety of tools in an intuitive, familiar user interface (UI).SayHey Messenger® even leverages AI and machine learning technology to flag potential compliance risks.
SayHey Messenger® is available in two deployments. Banks can choose between a web app and mobile app for iOS and Android. This bank-friendly text messaging platform can also be integrated into a bank’s existing enterprise software systems.
Despite this latest round of SEC fines, instant messaging remains an key component of the corporate landscape, with instant messaging being one of the most effective tools for business communication. SayHey Messenger® includes the following features and capabilities.
- Data sovereignty for control and ownership of all messaging data;
- Fully compliant instant messaging for regulated businesses;
- Seamlessly integrates into existing company software platforms;
- Admin portal for moderation, auditing, and inclusivity;
- SayHey Spaces for company-wide broadcasts and team collaborations;
- Engaging, intuitive user interface for incredible adoption rates;
- Send compliant SMS messages to exterhttps://7t.co/contact/nal users with full data retention; and
- Custom UI with your logo, colors and branding elements for a style that’s all yours.
SayHey Messenger® can be deployed in a matter of days. Contact us today to learn more about SayHey Messenger® and how this business messaging app can help your bank avoiding costly fines and penalties.
