In a significant move to tighten communication controls, NatWest has implemented a comprehensive ban on WhatsApp usage for work-related communications. The British banking giant has also blocked several other messaging platforms, including Skype and Facebook Messenger, from staff work devices.
The FTSE 100 lender’s decision comes amid intensifying regulatory scrutiny following industry-wide fines exceeding £2 billion in the United States. The crackdown specifically targets unauthorised electronic messaging that cannot be properly archived for compliance purposes.
The bank’s strategic shift aims to ensure all business communications occur through channels that enable message retrieval, aligning with strict regulatory requirements. This move reflects growing concerns from financial watchdogs about the use of encrypted messaging platforms that could potentially mask market abuse or misconduct.
Regulatory pressure has mounted since 2021 when American authorities began imposing substantial penalties on financial institutions. JPMorgan Chase faced a combined fine of £200 million from the Securities and Exchange Commission and the Commodity Futures Trading Commission, setting a precedent for subsequent enforcement actions.
The Covid-19 pandemic has exacerbated these challenges, as remote working arrangements led to increased usage of personal messaging apps. Major institutions including Goldman Sachs, Citigroup, and British lenders Barclays and HSBC have all faced significant penalties for record-keeping violations.
The Financial Conduct Authority has intensified its focus on this issue in the UK market, conducting detailed assessments of financial firms’ communication policies. NatWest’s spokesman emphasised their commitment to compliance, stating they “only permit the use of approved channels for communicating about business matters.”
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