HSBC under investigation in U.S. over WhatsApp use

HSBC Holdings is being investigated by U.S. regulators over bankers’ misuse of services such as WhatsApp.

The London-based bank is cooperating with the Commodity Futures Trading Commission probe into the use of “non-HSBC approved messaging platforms for business communications,” according to its annual report published alongside earnings on Tuesday. 

HSBC Chief Executive Noel Quinn told Bloomberg News the CFTC’s work was part of a broad investigation by U.S. authorities. “I don’t think it’s specific, I think it’s general across all financial institutions,” said Quinn in a phone interview.

“They’re looking at the use of mobiles and WhatsApp and text messages to make sure it’s appropriate,” he said.

In December, the CFTC and Securities and Exchange Commission fined JPMorgan Chase $200 million after finding that staff at the bank had for years shrugged off their surveillance duties and sent work-related messages using platforms such as WhatsApp or their personal email addresses.

“We obviously have internal procedures and requirements as to the use of nonbank platforms,” HSBC Chief Financial Officer Ewen Stevenson said in a phone interview.