“The DOJ assesses a corporation’s compliance programs and compliance cultures, where regulators want to see compliance programs that reward ethical behavior and punish unethical behavior.”
– Keith Mellott, Manager, Grant Thornton Forensics Advisory Services
This week, we examine how Deutsche Bank and Barclay will reduce bonuses for senior staff that inappropriately used WhatsApp. We explore the importance of finding the right communications compliance technology partner. We highlight another SEC investigation into Wells Fargo for using unapproved messaging applications. And finally, we consider the cost of corruption and learn what companies must monitor to avoid regulatory infractions.
‘Substantial Reduction’ in Bonuses at Deutsche Bank and Barclays as Fallout from WhatsApp Scandal Continues
As an example of individual accountability, Deutsche Bank and Barclays have cut bonuses for senior staff that inappropriately used WhatsApp as the fallout from an industry-wide crackdown on the use of private messaging services continues. Employees found to be severely breaching policies will see a “substantial reduction” in their bonus. However, some experts suggested that banks imposing penalties on their employees was not necessarily an effective way of tackling the issue.
Future-Proofing Compliance: The Importance of Finding the Right Communications Compliance Technology Partner
Regulatory scrutiny is rising in light of the continued uncertainty in global financial markets and the industry’s response to those challenges. As financial services firms respond to this regulatory scrutiny, communications compliance is one of the top areas of concern. Communications surveillance helps achieve two goals: reinforce and adhere to the Code of Conduct and meet regulatory obligations for trading compliance. With those two goals in mind, we expect regulatory organizations to focus on communications surveillance. Learn why investing in technology that proactively monitors company communications is the best way to handle regulatory requirements in 2023.
SEC Looking Into Wells Fargo Communications
Wells Fargo is once again under investigation by federal regulators for record retention practices. The SEC is looking into Wells Fargo’s “compliance with records retention requirements relating to business communications sent over unapproved electronic messaging channels,” the company outlined in an SEC filing. Wells Fargo also disclosed in Tuesday’s filing that it remains “involved in a number of judicial, regulatory, governmental, arbitration and other proceedings or investigations concerning matters arising from the conduct of its business activities, and many of those proceedings and investigations expose the Company to potential financial loss or other adverse consequences.”
The Cost of Corruption in Tech and Telecom
The Biden administration named the fight against corporate corruption as one of its priorities, citing it as core to US national security interests. Last year, the US Department of Justice Criminal Division secured more than 250 fraud convictions, while the Money Laundering and Asset Recovery Section secured more than two dozen more convictions. In addition, an FBI alert reported more than 241,000 business email compromise incidents in financial institutions over the prior five years, resulting in a more than $43.3 billion loss. It only takes a single employee clicking a link or following misleading instructions in a corrupt email to open a digital gate into the broader corporate IT infrastructure. The ramifications can be significant. Learn how to avoid FCPA infractions by monitoring international relationships and internal culture.
