A survey released on Wednesday revealed that global financial companies are falling behind in monitoring and archiving all business-related communications using personal messaging apps.

The Annual Compliance Health Check conducted by data compliance firm SteelEye indicated that 63% of approximately 400 compliance executives in the U.S., Europe, and Asia Pacific reported not monitoring staff usage of WhatsApp for compliance purposes. Additionally, only 27% stated that they were investing in communications surveillance capabilities.

The survey also highlighted that more than a third of respondents cited turbulent geopolitics and higher-for-longer interest rates as reasons for scrapping technology projects aimed at supporting compliance efforts. According to SteelEye, total financial penalties linked to record-keeping missteps across personal messaging tools have exceeded $2 billion.

While U.S. regulators have been at the forefront of enforcing strict rules on record-keeping, SteelEye noted that other global watchdogs were adopting a “no-nonsense approach.” This trend indicates that financial firms could face additional fines, further increasing costs for banks already struggling to manage escalating expenses.

Source: Reuters