- A banker answers honestly when interviewed by the regulator because they decide it's better for the Bank to take the fine than lie to regulator and risk personal criminal charges (unlikely, but why take that risk?).
- Regulator asks for evidence of some documentation (like trade confirmation), compliance asks banker, banker doesn't have it and admits it was over this app.
- Whistleblower or other source makes regulator believe there are prohibited communication and regulator demands phones be turned over.
- Other similar banks are caught in violation, and regulator does sweep of similar banks and demands phones be turned over.
The regulator has the ability to shut down the bank. The bank can easily tell the banker to turn over an unlocked phone or face legal action. The banker then turns over the phone.
I'd delete all my messages before doing any of that. I'm not one for deceiving the regulators, but for lack of a better term when it comes to compliance, they cannot handle the truth.
- A banker answers honestly when interviewed by the regulator because they decide it's better for the Bank to take the fine than lie to regulator and risk personal criminal charges (unlikely, but why take that risk?).
- Regulator asks for evidence of some documentation (like trade confirmation), compliance asks banker, banker doesn't have it and admits it was over this app.
- Whistleblower or other source makes regulator believe there are prohibited communication and regulator demands phones be turned over.
- Other similar banks are caught in violation, and regulator does sweep of similar banks and demands phones be turned over.
The regulator has the ability to shut down the bank. The bank can easily tell the banker to turn over an unlocked phone or face legal action. The banker then turns over the phone.