American banking giant JPMorgan is reportedly going to pay approximately $200m to resolve investigations related to monitoring employee communications.
JPMorgan could reach a settlement with the Securities and Exchange Commission and Commodity Futures Trading Commission by the end of 2021, Bloomberg reported citing undisclosed sources.
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The settlement figure has not been finalised yet as the SEC commissioners have still not voted on resolving the matter.
Financial services firms in the US are required to thoroughly monitor communications related to their business.
The rise in the number of mobile messaging apps and the Covid-19 pandemic has made it harder for them to comply with monitoring regulations.
JPMorgan’s compliance leading up to and during the Covid-19 pandemic is being investigated by the authorities.
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By GlobalDataAs per Bloomberg’s earlier report, in June this year, the lender asked its employees, bankers, traders and financial advisors to look for messages related to work and set them aside.
Separately, one of the bank’s internal notices had directed recipients to go through their messages since the start of 2018 and save work-related messages till the company’s legal department instructed them otherwise.
In August this year, JPMorgan revealed that it is responding to requests for information “concerning its compliance with records preservation requirements in connection with business communications sent over electronic messaging channels that have not been approved by the firm.”
Recently, the European Commission fined Barclays, NatWest (RBS), UBS, HSBC, and Credit Suisse for participating in illegal foreign exchange (‘Forex’) spot trading.
