JPMorgan Fined $200 Million Amid WhatsApp Debacle

JPMorgan Fined $200 Million Amid WhatsApp Debacle

JPMorgan Chase & Co. (NYSE: JPM) is set to pay USD200 Million in fines to two U.S. banking regulators in order to resolve charges stating that its Wall Street team allowed workers to use WhatsApp as a means of evading federal record-keeping laws. The company’s employees used personal devices to converse about its matters and did not keep the messages.

“JPMorgan’s failures hindered several Commission investigations and required the staff to take additional steps that should not have been necessary,” Sanjay Wadhwa, deputy director of enforcement at the Securities and Exchange Commission, said in a statement announcing the fine.

The SEC requires financial Institutions to maintain records of communication in the event that the agency needs to access those records for an investigation at any point. The condition was set to make sure that all financial firms are not tampering with anti-fraud or antitrust laws.

“As technology changes, it’s even more important that registrants ensure that their communications are appropriately recorded and are not conducted outside of official channels in order to avoid market oversight,” SEC Chair Gary Gensler added.

Following the charge and its admission of wrongdoing, JPMorgan has made changes to ensure that here-on-out all employees use company devices for work-related purposes. 

“JPMorgan’s failures hindered several commission investigations and required the staff to take additional steps that should not have been necessary,” Sanjay Wadhwa, the SEC’s deputy director of enforcement, said in a statement. “This settlement reflects the seriousness of these violations. Firms must share the mission of investor protection rather than inhibit it.”

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