November 19, 2014 admin

Compliance Challenges For Communication

Today’s new environment shows a marked shift of responsibility from the regulator to the regulated. Until now, the obligation for understanding communications media used in the negotiation of each transaction was firmly with the authorities, with requests often media-specific, and targeting individuals, rather than transactions. However, the change in the processing, analysis and recovery of data retained by regulated firms is happening now. The Dodd-Frank Act, and the interpretation of the ‘intention’ of the rules by the CFTC, means firms must produce communication records relating to specific transactions, and in the future, the industry should expect to see requests that target individual trades.
In the US, mobile recording has not been the norm, and systems have not been designed to cope with the massive increase in volume that tracking mobile and voice in conjunction with email conversations will bring.
Now with the increased privacy and security awareness among businesses, customers, and elected officials, traditional best practices are being incorporated into new laws, regulations and supervisory guidance that define a higher security standard that all affected organizations must achieve. Information security is no longer only a prudent business decision, it is mandated.
Legal mandates require organizations to maintain the confidentiality of sensitive information. The growing number of laws and regulations that mandate effective electronic security steps make management and control critical to any business that plans to allow the use of electronic messaging and communication tools in conducting business.
The ability to search for keywords and phrases has been an integral part of the compliance officer’s monitoring and retrieval process─regular searching of users’ email, Bloomberg and other text-based messages is now commoditized, and forms part of almost all retention platforms. However, the ability to search for keywords in voice recordings and integrate them within the lifecycle of a specific trade is a challenge that compliance officers are about to face.
Banks are now starting to deploy systems to allow them to meet the challenges of increased retention and retrieval challenges. A correctly deployed and targeted system is able to increase productivity and reduce false positives for the monitoring and retrieval of messages.

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