Compliance
Deutsche Reportedly Overhauling Electronic Communications
The reported move by the German bank to improve recording of electronic communication channels comes after other big banks are tightening rules as they charter uncertain waters in the face of increasingly tighter rules from regulators. It is understood that control of such communications is a challenge for the entire banking sector.
Deutsche Bank is reportedly planning greater oversight of employees’ private communication channels such as WhatsApp as regulators in the US look to tighten controls.
The bank is planning to boost its ability to store and monitor the use of messaging apps, with the aim being to allow staff the convenience of using electronic comms services while also fulfilling regulatory requirements, according to one media report (Bloomberg).
In December 2021, the broker-dealer subsidiary of JP Morgan was fined $125 million by the US Securities and Exchange Commission for “widespread and longstanding” failings by the firm and its staff to protect and maintain written communications. Employees often communicated about business on personal devices, using texts, WhatsApp and personal emails, the SEC said.
When imposing the fine on JP Morgan, SEC chair Gary Gensler said that as technology changed, it was “even more important” that registrants ensure that their communications are “appropriately recorded and are not conducted outside of official channels in order to avoid market oversight.”
Deutsche Bank came under the spotlight last month after it emerged that Asoka Woehrmann, current chief executive of the bank’s asset management arm DWS Group, used a non-work email account in 2017 and 2018 to arrange an investment by the bank when he headed its German retail operations, according to emails seen by German publication Süddeutsche Zeitung.
In December, according to the Financial Times, Credit Suisse asked employees for access to their personal mobile phones and other devices if they used them to communicate with clients or colleagues.
Deutsche Bank declined to comment on the matter to this news service.
