BNP Paribas Faces Investigations for Unapproved Messenger Platform Use
Investigations by the SEC and CFTC could potentially lead to a settlement with BNP Paribas over WhatsApp matters
BNP Paribas, a leading global bank, has found itself in the midst of investigations by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over record-keeping violations. The violations are related to the use of unapproved electronic messenger platforms for business communications.
The bank's Chief Financial Officer, Lars Machenil, has stated that the provisions related to this matter are not specific to BNP Paribas or French banks, suggesting a broader industry issue.
In the second quarter of this year, BNP Paribas set aside €125 million ($137.4 million) for litigation, but the bank declined to confirm whether this was related to the messenger probes. The proposed resolutions for these investigations, subject to finalization by the CFTC and SEC, could potentially see the bank paying a hefty fine.
BNP Paribas is not alone in facing such investigations. Several other institutions, including Wells Fargo, BNY Mellon, Fifth Third, Societe Generale, and asset manager BlackRock, have also been under scrutiny this year. Notably, HSBC and Scotiabank were ordered to pay $45 million and $22.5 million, respectively, in May to resolve probes into messenger-platform misuse.
JPMorgan Chase agreed to pay regulators $200 million in December 2021 over similar activity, but no specific companies are publicly documented to have received fines in 2021 for handling record-keeping difficulties related to the use of unauthorized messenger platforms for business communication.
BNP Paribas has been cooperative in addressing and remedying any issues that may arise, working closely with the relevant authorities and regulators. The bank has also received or may receive requests for information from various supervisory, governmental, or self-regulatory agencies.
It's important to note that no information about BNP Paribas purchasing licensing rights was provided in the context given. The outcome of the investigations remains to be seen, but BNP Paribas, like other institutions, is committed to maintaining compliance with all relevant regulations.
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