Closing Gaps in Compliance: E-Communications Surveillance as a Strategic Priority
At Gryphon Compliance, our mission is simple: empower our investment management firm clients to stay ahead of regulatory risk. In today’s high‑stakes environment, that means keeping a sharp eye on electronic communications—not just emails, but texts, chats, voice, and even video messages. Why? Because regulators like the SEC, FINRA, CFTC, and FCA have made it abundantly clear that firms must take electronic communications surveillance seriously:
- Between 2022–2024, U.S. regulators levied over $2.8billion in fines against firms for failing to preserve or supervise electronic communications—including personal texts and WhatsApp chats
- Outside the U.S., the UK FCA has similarly demanded banks reportWhatsApp policy breaches and even banned use of apps for work messaging
These aren’t one‑off incidents—they’re the new normal. As part of a modern compliance toolkit, surveillance of off‑channel communications isn’t optional—it’s mission‑critical.
What Surveillance Means in Practice
- Widening the net beyond email
Regulators expect firms to capture and archivemessages across a multitude of platforms—whether email, Teams, Bloomberg Chat,WhatsApp, or SMS - Robust policies and supervision
Surveillance technology is only as strong as the policies and training behind it. Firms need clear rules on approved platforms,consistent enforcement, regular control testing, and documented staff training - Documentation for regulators
It’s not enough just to have tools. Firms must maintain transparent documentation on implementation, validation, and design ofsurveillance systems to demonstrate sound governance
Why It Matters So Much
1.Regulatory demand
SEC Rule 17a‑4 and FINRA Rule 3110 mandate the retention and supervision of all business-related electronic communications
2. Massivefines
Repeated enforcement actions—like the $390 million in fines for text/WhatsApp violations—underscore that compliance lapses are no longer small matters
3.Emerging use of AI
Nearly a third of financial firms now deploy AI in communications compliance programs, signaling a shift toward automated, intelligent monitoring
4. Global scrutiny
Regulators worldwide are mandating stricter e‑communications surveillance—reflecting a global crackdown
Gryphon Compliance’s Approach
Gryphon Compliance has partnered withFingerprint Supervision to deliver a best-in-class, tailored e-communications compliance solution that streamlines monitoring and elevates compliance performance. Backed by proven expertise, Fingerprint offers a leading platform that provides:
- Regulatory monitoring gap assessment
- Surveillance policy development
- Various electronic communications platform integration
- Conduct ongoing reviews of outgoing and incoming communications
- Automated issue escalation protocols using AI-based tools
- Quarterly reporting leveraging advanced analytics
Don’t Wait—Act Now
Electronic communications surveillance is no longer a checkbox—it’s a critical pillar of effective compliance. Firms that lack intelligent, comprehensive e-comm programs leave themselves vulnerable to regulatory scrutiny and investigations, significant financial penalties, reputational harm, and operational disruption.
To learn howGryphon Compliance can strengthen your e-communications oversight strategy, contact us for a consultation.
Jonathan Wowak is Director of Gryphon Compliance Services LLC. He can be reached at jwowak@gryphongroup.us
