Regulators look at trade chat rooms as spaces for illegal activities

While chat rooms are not conceived as environments that deploy technology to operate, bank regulators have focused part of their research to these spaces, having interest to abandon their use, They are claiming they are places of exchange of sensitive information about their customers and colleagues.

In this sense, the regulatory authorities indicate that currently these rooms are not being monitored by banks, with the same care that phone calls and emails, so that They are in danger of being used as a platform to facilitate market manipulation and shady business.

The first warning

All these signs occur in parallel with a series of investigations on different platforms, about manipulation in the exchange and the price of currencies driven from chat rooms.

Probably one of the elements which caused interest in investigators, it was the way some employees began communicating through these chats, boisterous conversations and watching risqué.

This produced such rooms were included in deeper investigations and presumably could be related to manipulations in exchange rates LIBOR (London Interbank Offered).

In colombia, one that is oriented towards the review and regulation of computer crime Latin American countries, the first warning call made on this subject. In early April last year, Deputy Criminal Policy and Restorative Justice, He noted that They had identified some 40 ciberollas, web portals that are dedicated to the sale of drugs over the Internet.

Preparing sanctions

Although there is no end of cybercrime at this time in any legal instrument in the country, the government has announced the development of cyber initiatives to prevent, regulate and control as far as possible, those fraudulent transactions that occur on the web.

But nevertheless, If offenses are discovered in the investigations that are currently deployed, They shall be punished with Fines for international banking institutions, and this will also have a negative effect on his reputation.

Those sectors involved with investigations transmitted by the Wall Street Journal (WSJ), where RBS, Barclays, UBS, JP Morgan and Citigroup have suspended traders related to research currency market.

Preventive measures

As measures of prevention and control of cybercrime, several banks are examining whether traders should have access to chat rooms or not. Others are considering closely monitor these conversations, to restrict them within a standard compliance.

WSJ reports that both JP Morgan & Chase Co. y Credit Suisse, are some of the financial institutions likely to stop using chat rooms as a method of internal communications.

Currently these chats connect thousands of employees in the financial industry. The risk of using this method to provide sensitive information including, It is too large for many of these large firms.

Chat rooms with names like "The Cartel" and "The Club of the Bandidos", where traders openly joke about the influence they have on the market, can be disastrous for these banks if they maintain conversations linked to illegal activity.

The executives of these institutions are seeking take decisive action to curb this situation, precisely because the big banks worldwide not currently enjoy a good level of prestige, and this may worsen their image internationally.

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Summary
Regulators look at trade chat rooms as spaces for illegal activities
Title
Regulators look at trade chat rooms as spaces for illegal activities
Description
Business chat rooms are being monitored but not at a high level such as telephone calls and emails, so they tend to be used for shady dealings and handling of illegal goods.
Author
Medium
Colombia Legal Corporation
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