The US Commodity Futures Trading Commission (CFTC) has issued fines against US Bank NA and Oppenheimer & Co for breaches in communication regulations, according to a recent announcement. US Bank will pay $6 million, while Oppenheimer & Co faces a $1 million penalty, both settlements for failing to adhere to CFTC’s record-keeping standards. The infractions involve the use of unauthorized communication channels for work-related correspondence.
These fines mark the latest in a series of penalties issued by the CFTC and the Securities and Exchange Commission (SEC) against numerous firms. The regulatory bodies have been cracking down on the widespread use of personal devices and messaging apps like WhatsApp for professional communications. The CFTC alone has imposed civil penalties totaling $1.1 billion on 22 institutions for similar violations.
The investigation revealed that both US Bank and Oppenheimer failed to prevent employees, including senior staff, from utilizing personal texts and other unapproved methods of communication since at least 2019.