Fairwords Weekly: Off-Channel Communications, Organizational Fraud, Compliance Survey, and the State of Compliance
December 1, 2022
“Many employers do not know that their employees are using off-channel communication and have no policies covering their use or method of retaining the conversations. So, when faced with an investigation or litigation, employers cannot retrieve, produce, or use these critical pieces of evidence.”
— Tarek J. Helou, Jessica R. Lonergan, and Nicholas E. Hakun, Wilson Sonsini Goodrich & Rosati
Employee use of “off-channel” communications has a growing risk of repercussions that all industries should be aware of. Learn how fraud is perpetuated in organizations and a few effective responses that can be used to minimize risk. Explore survey results highlighting how texting is a top communications concern for wealth management compliance officers. Finally, get a free eBook that covers the state of compliance in 2022.
“Off-channel communication” occurs when employees engage in business communications on personal devices or unapproved third-party applications. Off-channel communications are pervasive across industries. However, unlike other industries, the financial sector must keep copies of all business-related communications to or from employees. As a result, the DOJ is preparing guidance for corporations and will have a firm stance on the issues by recommending that corporations have robust, transparent, and meaningful compliance solutions. The DOJ’s guidance will apply to every company under investigation in any industry—not only companies in the financial services sector.