HSBC, Scotia Pay $38 Million to Settle WhatsApp Chat Probes (1)

US regulators reached a total of about $38 million in settlements with units of HSBC Holdings Plc and the Bank of Nova Scotia for failing to monitor employees’ communications on unauthorized messaging apps.

HSBC Securities and Scotia Capital Inc. together agreed to pay $22.5 million to the Securities and Exchange Commission. Scotiabank entities agreed to settle a similar Commodity Futures Trading Commission probe for $15 million.

“Today’s actions should not only remind firms of the importance of following SEC recordkeeping requirements, but also the value of disclosing violations when they do occur,” Gurbir Grewal, the SEC’s enforcement chief, ...