New York, NY – January 14, 2025 – Santander US Capital Markets (SanCap) has been fined nearly $4 million by the U.S. Securities and Exchange Commission (SEC) for using unauthorized messaging systems in business communications.

The SEC determined that SanCap employees had been using personal messaging applications, such as WhatsApp, to discuss business matters. These communications were not captured or retained by the company's recordkeeping systems, as required by federal securities laws.

By failing to preserve these communications, Santander violated recordkeeping rules designed to protect investors and maintain market integrity. The SEC's order states that the bank's actions deprived regulators of the ability to monitor potentially harmful conduct.

"Firms must maintain adequate books and records to ensure that regulators can effectively oversee their activities," said [Name], Director of the SEC's Division of [Division]. "The use of unauthorized messaging apps undermines the integrity of our markets."

Santander has agreed to pay the fine and to take steps to improve its recordkeeping practices.