Call Monitoring Program – Essential Elements for Effective Compliance
Mobile call monitoring compliance is an essential regulatory component for many financial institutions. A firm could be subject to enforcement actions if they fail to demonstrate its call monitoring and voice recording strategies. These procedures should be the heart of every company’s regulatory compliance strategy.
The Financial Conduct Authority (FCA) is one of the UK regulators that requires UK companies to monitor their employees’ phone calls.
Financial firms must implement internal controls to ensure that customers are treated relatively under the FCA requirements. The compliance officer should implement a call monitoring system to ensure that advisors comply when communicating with customers via mobile phones.
One of the essential components for efficient compliance is to monitor any high-risk traders over time. The CFTC inspects companies that fail to supervise traders under investigation for manipulative and spoof trading. Firms must consider all data elements about their customers to limit their exposure to such actions when they monitor trader activities.
Financial firms can utilize holistic surveillance to gain more information about a trader than the data they get from recorded phone calls. These data should include trade data and patterns of participants (client, trader, broker, etc.), commerce-related communication between entities, including text messages and WhatsApp chats, email, and email, information disseminated on the market during the relevant period, and many more.
Commercial banks frequently key in keywords and phrases often utilized by financial institutions. They also use call monitoring technology to detect suspicious conversations.
A list of keywords and phrases is beneficial in deterring employees who use phone calls to commit illegal activities. Limiting the number of keywords to fifteen will be more valuable to avoid false positives. Additionally, it would be helpful if the monitoring and call recording software is settable to ignore specific keywords, such as “buy” and “sell,” which are common in mass correspondences like newsletters. It can flag keywords such as “just between us” or even “call me at my home.” This ensures the company’s monitoring efforts focus on the voice communications that need the most attention.
To learn more about all the essential constituents for effectual compliance in the infographic below developed by TeleMessage: