Skip to content

Scotiabank fined US$22.5M by U.S. agencies for use of messaging apps

20230511140540-645d36f2a68944be5f190b95jpeg
The CFTC says it has issued an order that finds Scotiabank affiliates for years failed to stop employees, including senior staff, from communicating through unapproved methods including text messages and WhatsApp. A pedestrian walks past a Scotiabank branch in downtown Calgary, Alta., Friday, Sept. 16, 2022.THE CANADIAN PRESS/Jeff McIntosh

TORONTO — Bank of Nova Scotia has been fined US$22.5 million by two U.S. agencies for violations related to employee use of unapproved communication methods including text messages and WhatsApp. 

The Commodity Futures Trading Commission issued a US$15 million penalty related to record-keeping and supervision failures, while the Securities and Exchange Commission levelled a US$7.5 million fine. 

The CFTC said it found that Scotiabank affiliates for years failed to stop employees, including senior staff, from communicating through unapproved methods including text messages and WhatsApp, while the SEC said it found "pervasive and long-standing" use of off-channel communications at the bank.

The agencies said the bank was also required to keep a record of these communications but that they were generally not preserved, violating record-keeping provisions of federal securities laws.

The CFTC said the use of the communication channels violated Scotiabank's own policies, and that some of those tasked with supervising these policies themselves used non-approved methods of communications.

Scotiabank spokeswoman Heather Armstrong said in a statement that the bank is committed to running its business according to the "most current high standards of business conduct and adhering to all regulatory requirements," and has agreed to the resolutions with regulators.

In 2020, the CFTC ordered Scotiabank to pay US$127.4 million for manipulation of futures contracts, false statements, compliance and supervision violations.

This report by The Canadian Press was first published May 11, 2023.

Companies in this story: (TSX:BNS)

The Canadian Press


Looking for National Business News?

VillageReport.ca viewed on a mobile phone

Check out Village Report - the news that matters most to Canada, updated throughout the day.  Or, subscribe to Village Report's free daily newsletter: a compilation of the news you need to know, sent to your inbox at 6AM.

Subscribe