CFTC Fines Financial Institutions $260 Million for Communication Failures
The Commodity Futures Trading Commission (CFTC) has ordered four financial institutions, including BNP Paribas, Société Générale, Wells Fargo, and Bank of Montreal, to pay a total of $260 million for failing to maintain, preserve, or produce required records and for not diligently supervising their businesses. The institutions admitted to the charges and are ordered to cease further violations and undertake remedial actions. The CFTC has now taken enforcement actions against 18 financial institutions, imposing over $1 billion in penalties for violations related to unapproved communication methods. The use of such methods, including personal text and WhatsApp messages, violated internal policies and procedures, and the firms failed to provide requested written communications promptly. The Securities and Exchange Commission (SEC) has also filed and settled charges against financial institutions for similar violations.