Deutsche Bank has to pay high fines for WhatsApp use

AAmerican regulators have against the Deutsche Bank and numerous other banks imposed high fines because they did not store electronic communication with their customers at all or only insufficiently. This is due to the fact that bank employees, especially in the capital market business, exchange information with their customers via smartphones with services such as Whatsapp or Signal, and business and private life are then quickly mixed up, especially when working from home. In addition, chats cannot easily be stored for years on many of these services and databases, which is often required by banks for business communication.

The US Securities and Exchange Commission fined 16 banks for insufficient documentation and storage of customer conversations with a total of 1.1 billion dollars. The SEC imposed the maximum fine of $125 million on eight banks: Deutsche Bank, Swiss banks UBS and CreditSuisse and the British Barclays, as well as the four American houses Goldman Sachs, Morgan Stanley, Citi and Bank of America.

Waiver of bonuses

The US futures market regulator CFTC also imposed fines totaling $710 million. Bank of America received the highest CFTC fine at $100 million, followed by Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, Morgan Stanley and UBS with $75 million each. The largest US bank, JP Morgan, had accepted a fine totaling $200 million months ago. The board of Deutsche Bank has announced that it will waive EUR 75,000 in bonuses due to cultural misconduct by employees.

Deutsche Bank claims it took action against employee misconduct as early as December, prior to the start of the regulatory investigation in the United States. The use of private mobile phones for customer calls is prohibited. A new program called “Movius” was initially made available to employees in the capital market business in the USA for their business smartphones in the spring. It is designed to ensure Whatsapp messages are stored longer. “Deutsche Bank has fully cooperated with the regulators on this industry-wide issue. The bank has also introduced new technical solutions for text and chat messages that are easy to use and in line with legal requirements. We will continue to expand these solutions to meet the expectations of regulators and our customers,” a spokeswoman for Deutsche Bank told the Frankfurter Allgemeine Zeitung

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