![]() ![]() ![]() If firms operated in a world where there were no consequences for misconduct and reckless behaviour, surveillance technology wouldn’t matter. ![]() Here, omnichannel compliance recording is essential. In order to ensure compliance across these new forms of communication, firms need to implement modern and resilient compliance recording technology that is able to integrate with surveillance systems to ensure all regulatory obligations are met and conduct risk is minimised.īut before firms can monitor these new communication channels, they first need to be able to record them. As a result, firms are getting ensnared in fines as large as US$200mn due to record keeping and surveillance lapses. According to a NICE Actimize survey, 60% of firms are not monitoring newer communication channels, including Microsoft Teams, Bloomberg Chat, Zoom and WhatsApp. #FACEBOOK MATTHEW BANKS HOW TO#Compliance teams should feel encouraged to think big picture about how to improve record retention and surveillance efforts, as well as focus on integrating systems that can record and retain all types of communications such as voice, chat and video.Īdditionally, the proliferation of new communication channels, used by regulated employees both in the office and at home, is making misconduct harder to catch. ![]() With substantial monetary and reputational damages around record keeping affecting many firms in recent months, improving surveillance efforts is now more essential than ever. Monitor new communications channels or face hefty fines And firms’ widening definitions of misconduct, which can now include other risk-evoking scenarios like harassment and discrimination, are creating escalating exposure to penalties and reputational damage. In recent years, global banks have put aside funds in anticipation of action in relation to unauthorised communications practices such as personal account dealing, money laundering, market manipulation, tax evasion, and even activities that weren’t previously within the scope of their ethics policies. As the underlying risks evolve, the focus of compliance shifts to assessing whether the controls are still managing these effectively. Effective compliance programmes focus on the underlying risks facing the company rather than on the controls in place to mitigate these risks. With the SEC, FCA, and other regulatory bodies imposing multiple fines in recent months around record keeping, compliance teams need to focus on areas of highest risk to ensure that compliance resources are allocated to the correct areas of the business. As regulatory requirements and penalties continue to proliferate, financial institutions are abandoning old methods of maintaining compliance in favour of more technologically advanced approaches. This followed a shot across the bow from the FCA, which warned banks and wealth management firms of the perils of skirting compliance for advisors and traders working from home. Late last year, the SEC announced a US$200mn fine for a global bank that had lapsed in its compliance with regulatory requirements around communications monitoring. ![]()
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