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

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U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler, testifies earlier the Senate Banking, Housing and Urban Affairs Committee during an oversight proceeding connected Capitol Hill successful Washington, September 15, 2022.

Evelyn Hockstein | Reuters

U.S. regulators connected Tuesday announced a combined $549 cardinal successful penalties against Wells Fargo and a raft of smaller oregon non-U.S. firms that failed to support physics records of worker communications.

The Securities and Exchange Commission disclosed charges and $289 cardinal successful fines against 11 firms for "widespread and longstanding failures" successful record-keeping, portion the Commodity Futures Trading Commission also said it fined 4 banks a full of $260 cardinal for failing to support records required by the agency.

It was the latest step by regulators to stamp retired the pervasive usage of unafraid messaging apps similar Signal, WhatsApp oregon Apple's iMessage by Wall Street employees and managers. Starting successful precocious 2021, the watchdogs secured settlements with bigger players including JPMorgan Chase, Goldman Sachs, Morgan Stanley and Citigroup. Fines related to the contented full much than $2 billion, according to the SEC and CFTC.

The firms admitted that from astatine slightest 2019, employees utilized broadside channels similar WhatsApp to sermon institution concern and failed to sphere records "in usurpation of national securities laws," the SEC said Tuesday.

Wells Fargo, the 4th biggest U.S. slope by assets and a comparatively tiny subordinate connected Wall Street, racked up the astir fines connected Tuesday, with a full of $200 cardinal successful penalties.

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