# Factbox-Big banks expected to rack up more than $1 billion in fines for WhatsApp use
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-22
Category: BANKING
Category URL: https://financedigest.com/category/banking
Meta Title: Banking Giants Face $1 Billion Fines for Unapproved
Meta Description: Discover the regulatory fines faced by major banks like JPMorgan Chase & Bank of America for staff use of unauthorized messaging tools.
URL: https://financedigest.com/factbox-big-banks-expected-to-rack-up-more-than-1-billion-in-fines-for-whatsapp-usehtml

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By Angelique Chen

(Reuters) – Banking giants such as JPMorgan Chase & Co and Bank of America collectively face more than $1 billion in regulatory fines for employees’ use of unapproved messaging tools, including email and apps like WhatsApp.

The U.S. Securities and Exchange Commission (SEC) began probing banks’ record-keeping practices relating to the use of personal devices last year, Reuters reported at the time, and the [Commodity Futures Trading](https://www.financedigest.com/a-brits-guide-to-understanding-commodity-trading.html "A Brit’s Guide to Understanding Commodity Trading") Commission (CFTC) is also scrutinizing the issue, bank disclosures show.

Here is a list of fines that financial firms have already paid or expect to pay, according to recent disclosures:JP Morgan Chase & Co JP Morgan Chase & Co’s broker-dealer subsidiary was fined $200 million last year by the SEC and CFTC for widespread failures to preserve staff [communications on personal mobile](https://www.financedigest.com/communicating-with-the-customer-is-the-future-of-mobile-banking.html "Communicating with the customer is the future of mobile banking") devices, messaging apps and emails. JP Morgan acknowledged its conduct [violated securities laws](https://www.financedigest.com/president-trump-signs-executive-orders-on-trade-and-designates-trade-and-customs-law-violations-as-law-enforcement-high-priority.html "President Trump Signs Executive Orders on Trade and Designates Trade and Customs Law Violations as Law Enforcement “High Priority”"). The penalty was one of the first major [enforcement actions brought under SEC](https://www.financedigest.com/former-sec-enforcement-chief-and-deutsche-bank-general-counsel-richard-h-walker-joins-king-spalding-in-new-york.html "Former SEC Enforcement Chief and Deutsche Bank General Counsel Richard H. Walker Joins King & Spalding in New York") Chair Gary Gensler. Morgan Stanley Morgan Stanley has tentatively [agreed to pay $125 million](https://www.financedigest.com/iag-agrees-to-buy-80-stake-in-air-europa-for-400-million-euros.html "IAG agrees to buy 80% stake in Air Europa for 400 million euros") to the SEC and $75 million to the CFTC to resolve investigations into its record-keeping practices, it said in July. It already set aside $200 [million in its second quarter earnings to prepare for the penalty](https://www.financedigest.com/pwc-hit-with-8-9-million-penalty-for-serious-breaches-on-babcock-audits.html "PwC hit with .9 million penalty for ‘serious breaches’ on Babcock audits"). [Bank of America](https://www.financedigest.com/bank-of-america-merrill-lynch-joins-neptune.html)

[Bank of America earmarked about $200 million in the second quarter for litigation](https://www.financedigest.com/td-other-banks-reach-1-35-billion-settlements-to-end-stanford-litigation.html "TD, other banks reach .35 billion settlements to end Stanford litigation") tied to unauthorized electronic messaging by its employees. The [bank said in late July that it was in settlement talks](https://www.financedigest.com/exclusive-allianz-in-talks-with-banks-for-china-asset-management-venture-sources.html "Exclusive-Allianz in talks with banks for China asset management venture -sources") with the SEC and the CFTC.Citigroup Inc Citi is being investigated by the SEC for [communication over unapproved channels](https://www.financedigest.com/managing-cross-channel-communications-in-a-regulatory-swell.html "Managing Cross Channel Communications in a Regulatory Swell") used by its employees, the company disclosed in a regulatory filing in February.

The company set aside reserves to deal with the matter, Chief [Financial Officer Mark Mason said during its second](https://www.financedigest.com/new-york-holds-top-spot-london-second-in-z-yen-financial-centre-survey.html "New York holds top spot, London second in Z/Yen financial centre survey") quarter earnings in July. He didn’t specify an amount, but said it was aligned with what peer companies had disclosed.

[Goldman Sachs](https://www.financedigest.com/telefonica-hires-goldman-sachs-to-sell-uk-mobile-masts-stake-el-confidencial-says.html "Telefonica hires Goldman Sachs to sell UK mobile masts stake, El Confidencial says")

Goldman Sachs is in “advanced discussions” with the SEC and CFTC to resolve the probes, it said in a second-quarter filing. Barclays PLC

[British bank](https://www.financedigest.com/crown-agents-bank-owner-explores-sale-of-british-payments-group-sources.html "Crown Agents Bank owner explores sale of British payments group –sources") Barclays said it had reached an agreement in principle to pay $200 million to U.S. regulators, the company said in its half-year earnings in July. [Credit Suisse](https://www.financedigest.com/credit-suisse-54-billion-lifeline-offers-limited-respite-to-global-banks.html "Credit Suisse  billion lifeline offers limited respite to global banks") Group AGCredit Suisse said in July it had booked a $200 million litigation provision mainly relating to the record-keeping rules. Deutsche [Bank AG Deutsche Bank announced late July that it set aside 165 million euros in additional provisions for possible regulatory](https://www.financedigest.com/how-banks-can-avoid-regulatory-reporting-mistakes-with-a-good-dose-of-automation.html "HOW BANKS CAN AVOID REGULATORY REPORTING MISTAKES WITH A GOOD DOSE OF AUTOMATION") enforcement, in part from the SEC and CFTC investigations. UBS Group AG UBS Group said U.S. regulators were conducting investigations into the [bank and other financial](https://www.financedigest.com/financial-crime-is-the-chink-in-the-banks-armour.html "Financial crime is the chink in the banks’ armour") institutions relating to business communications.

(Reporting by Angelique Chen; Editing by Lananh Nguyen and Sam Holmes)


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