HSBC Holdings Plc (LON:HSBA) has taken further steps to tighten its internal communication protocols in light of recent regulatory investigations. As of Tuesday, the bank has prohibited employees from sending text messages on their corporate devices. This decision is an extension of a previous ban on the use of WhatsApp for business-related exchanges. A few regulated roles are still permitted to use text messaging, but only under strict archiving conditions. Personal devices remain unaffected by this policy change.
The move is part of HSBC's ongoing efforts to prevent potential financial misconduct, an issue that has been underscored by a series of market manipulation cases. Earlier this year, US regulators, including the Commodity Futures Trading Commission and the Securities and Exchange Commission, fined the bank for its failure to monitor communications on unauthorized messaging apps.
This new measure is designed to ensure compliance with recordkeeping rules within the banking industry. Regulatory bodies are scrutinizing information-sharing practices more closely than ever before, aiming to enforce stringent standards across the sector.
HSBC is not alone in facing penalties for breaches of these regulations. Other prominent financial institutions such as Bank of America Corp (NYSE:BAC)., Wells Fargo & Co., Barclays Plc, and Citigroup Inc (NYSE:C)., have also been penalized for similar infractions. The recent actions taken by HSBC signal a growing trend within the industry aimed at tightening controls over internal communications to meet regulatory requirements.
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