BNP Paribas SA is set to become the latest bank to pay a fine over the use of unapproved electronic messaging platforms.
(Bloomberg) — BNP Paribas SA is set to become the latest bank to pay a fine over the use of unapproved electronic messaging platforms.
The Paris-based firm has reached “proposed resolutions” with the Securities and Exchange Commission and the Commodity Futures Trading Commission that are linked to the use of unauthorized messaging services, it said in its half-year report Thursday. The settlements are “subject to finalization” by the two authorities.
BNP booked €125 million ($139 million) in legal provisions in the second quarter. While Chief Financial Officer Lars Machenil declined to say if that was related to the messaging probes, he said it related to a matter “not specific to BNP Paribas, not specific to French banks,” when asked about it in a Bloomberg TV interview.
Global banks including Goldman Sachs Group Inc., JPMorgan Chase & Co. and Deutsche Bank AG last year paid settlements totaling more than $2 billion in the matter following sweeping investigations by the SEC and CFTC. The agencies say that unauthorized messaging services such as WhatsApp undermine a requirement for finance firms to archive business-related communications, opening the door for misconduct to go unnoticed.
Read More: Wall Street Hit With $2 Billion of Fines in WhatsApp Probe
Societe Generale SA earlier this year disclosed its US unit has become part of the investigation. The bank hasn’t reported any provisions in the matter yet.
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