So-called out-of-channel communications have already been a problem in the world of finance. In fact, in recent years, US banks have been fined billions of dollars for allowing employees to use messaging apps such as WhatsApp, Signal and Telegram to communicate at work.
NatWest Group has blocked messaging services on all employee company devices, including: WhatsApp, Facebook Messenger and Skype. The bank had already asked to use only “approved channels” for business conversations, now it has decided to make it happen the platforms are inaccessible on company phones and PCs. NatWest employees will therefore only be able to use communication channels approved by the company, on which all messages and recordings are recoverable.
Using apps and services such as WhatsApp, Skype, Facebook Messenger makes it more difficult to control company communications. Messages, for example, could be difficult to recover or set so that disappear automatically. Those sent through approved channels are recoverable, and may be examined in case of suspicion of illicit activity. “Like many organizations we will now only allow the use of approved channels to communicate business matters, both internally and externally,” a NatWest Group spokesperson explained.
Because out-of-channel communications can be a problem for the bank
The so-called off-channel communications they have already been a problem in the world of finance. In recent years, in fact, US banks have been fined for billions of dollars for allowing employees to use messaging apps such as WhatsApp, Signal and Telegram to communicate at work.
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From 2021 the Securities and Exchange Commission American received fines for 2.8 billion dollars, and last August Ofgem sanctioned Morgan Stanley for “failing to record and retain electronic communications between January 2018 and March 2020”. Communications were made on “private phones via WhatsAppin which energy market transactions were discussed” and led to a fine of almost 7 million dollars.
NatWest Group said the arrangement came into force earlier this month. By limiting the use of unapproved messaging platforms the bank aims to prevent potential violations and safeguard the integrity of internal communications.
Second Harvey Knight, partner in the UK financial services regulatory team at law firm Withers, “it is only a matter of time before the FCA follows the SEC’s lead and fines UK banks and bankers for using communications channels to send business messages that cannot be easily retrieved. Not surprising that a major UK bank like NatWest is adopting preventive measures to prevent potential corporate recordkeeping issues from being brought under their purview by regulators.”
