In a decisive move to enhance compliance with regulatory standards, NatWest, one of the UK’s largest banks, has implemented a ban on the use of popular instant messaging applications such as WhatsApp, Skype, and Facebook Messenger for internal communications. This shift follows the bank’s earlier guidance encouraging employees to utilize only ‘approved channels’ for business-related discussions.
Recognizing the challenges posed by encrypted messaging platforms, which often feature disappearing messages and can be difficult to retrieve, NatWest has taken the step of making these applications inaccessible on company-issued devices. The bank’s commitment to maintaining rigorous record-keeping aligns with the Financial Conduct Authority’s (FCA) emphasis on ensuring that all communications are retrievable and compliant with industry regulations.
Robust regulations
“Like many organisations, we only permit the use of approved channels for communicating about business matters, whether internally or externally,” a NatWest spokesperson stated. This proactive approach comes in response to the FCA’s heightened scrutiny of unmonitored communications, which has become increasingly relevant in the context of a growing remote workforce.
The regulatory framework aims to mitigate the risks of market abuse and misconduct, yet the proliferation of third-party messaging apps has complicated enforcement efforts. While NatWest has restricted these platforms for internal use, it continues to offer WhatsApp as a channel for customer service inquiries, ensuring that clients can still access support through this familiar medium.
This policy shift follows a significant penalty imposed on Morgan Stanley, which faced fines nearing £5.5 million after the FCA found that the bank had violated communication recording rules due to staff using WhatsApp for trading discussions. Such incidents underscore the critical need for financial institutions to adhere to stringent communication protocols.
Moreover, the recent COVID inquiry has drawn attention to the perils of relying on messaging apps for important communications, with revelations of mass deletions of WhatsApp messages by government officials. Former Prime Minister Boris Johnson disclosed that he lost approximately 5,000 messages, which were never recovered, highlighting the inherent risks associated with third-party messaging platforms.
