Deutsche Bank Tightens Grip on WhatsApp Use Amid U.S. Crackdown

(Bloomberg) --

Deutsche Bank AG is seeking to tighten oversight of employees' electronic communication amid a clampdown by U.S. regulators on the widespread use of services such as WhatsApp in the financial industry.

The German lender plans to soon roll out a technological fix to strengthen its ability to store and monitor the use of messaging apps, according to people familiar with the matter. The goal is to allow staff the convenience of keeping the services while also satisfying regulatory requirements, they said, asking not to be identified discussing the private information.

Deutsche Bank has been stepping up investments in controls after regulators in the U.S. and Germany chided the bank for not doing enough. The latest project comes on the heels of an unusually high, $200 million fine imposed late last year on JPMorgan Chase & Co. for using platforms such as WhatsApp and emails, which violated rules to ensure work messages are archived for regulatory scrutiny.

“As technology changes, it's even more important that registrants ensure that their communications are appropriately recorded and are not conducted outside of official channels in order to avoid market oversight,” Securities and Exchange Commission Chair Gary Gensler said when the regulator imposed the fine.

Deutsche Bank, too, has faced questions about the use of private communication channels. Asoka Woehrmann, who oversees its asset management arm DWS Group, used his personal email account in 2017 and 2018 to coordinate an investment by the lender when he was head of its German retail operations, emails seen by Bloomberg show.

Deutsche Bank Chief Executive Officer Christian Sewing has said the bank is looking into the matter, which was first reported by Sueddeutsche Zeitung. Spokesmen for Deutsche Bank and DWS declined to comment.