The recent decision by NatWest Group to formally prohibit a range of messaging applications marks a significant step in the banking giant’s commitment to regulatory compliance and effective communication oversight. Initially reported by the BBC on November 12, the list of banned apps extends beyond WhatsApp, Meta’s Messenger, and Skype to include popular platforms such as Telegram, Signal, Viber, Snapchat, Discord, WeChat, and Line.
Rationale Behind the Ban
A spokesperson for NatWest explained, “Like many organizations, we only permit the use of approved channels for communicating about business matters, whether internally or externally.” This formal ban, which took effect on November 6, reinforces a long-standing policy discouraging the use of unapproved communication channels for business discussions.
The restrictions apply solely to company-issued devices, aiming to enhance oversight of official communications. This measure is crucial for protecting the bank, its customers, and its employees from potential regulatory or legal complications. The apps on the prohibited list are perceived to offer limited or no means of recovering records, which could be problematic should the bank need to provide documentation for compliance purposes.
Interestingly, this initiative does not target specific social media platforms nor does it signify a broader campaign against end-to-end encrypted services. However, a commonality among the banned applications—excluding Skype—is their support for disappearing messages, which are automatically deleted after a designated period. This feature raises concerns about the absence of a paper trail for business-related discussions, potentially complicating investigations into significant events.
While employees may still engage in conversations on these apps using personal devices, NatWest emphasizes that such practices should not occur, as the bank cannot oversee personal device usage. This approach mirrors strategies employed across the banking sector, where compliance teams monitor communications on platforms like Bloomberg Terminals for similar reasons.
Context of Regulatory Scrutiny
The backdrop to NatWest’s decision is a growing trend of regulatory scrutiny, with several banks facing hefty fines for inadequate recordkeeping. The U.S. Securities and Exchange Commission (SEC) has imposed fines exceeding billion across Wall Street, impacting major players such as JPMorgan Chase, Wells Fargo, and BNY Mellon. Additionally, the UK government has faced its own challenges regarding communication practices, particularly highlighted during inquiries into the handling of the COVID-19 pandemic.
These inquiries revealed troubling instances of missing messages and instructions to delete communications among high-ranking officials, raising alarms about transparency and accountability. Such revelations underscore the importance of maintaining clear and retrievable communication channels within organizations, especially in the financial sector.
In light of these developments, the UK’s Financial Conduct Authority (FCA) is reportedly preparing to survey financial institutions regarding their use of encrypted messaging apps and the monitoring of such communications. At NatWest, the list of approved communication channels includes Microsoft Teams, Viva Engage, Zoom, Outlook, Symphony Chat, and traditional SMS—each of which allows for the retrieval of records when necessary.
