{"id":554,"date":"2023-06-22T15:05:42","date_gmt":"2023-06-22T20:05:42","guid":{"rendered":"https:\/\/cmitsolutions.com\/bellevue-wa-1140\/?p=554"},"modified":"2024-12-20T11:04:07","modified_gmt":"2024-12-20T17:04:07","slug":"8-cybersecurity-regulations-to-be-aware-of-in-the-finance-sector","status":"publish","type":"post","link":"https:\/\/cmitsolutions.com\/bellevue-wa-1140\/blog\/8-cybersecurity-regulations-to-be-aware-of-in-the-finance-sector\/","title":{"rendered":"8 Cybersecurity Regulations To Be Aware of in the Finance Sector"},"content":{"rendered":"<p>Financial sector cybersecurity regulations are essential in today&#8217;s digital age, where the financial industry relies heavily on technology and data management. <span style=\"font-weight: 400\">There may not be a one-size-fits-all solution that guarantees financial services firms\u2019 cybersecurity. Nonetheless, specific regulations mandatory by law can help manage such monumental risks. <\/span><\/p>\n<p><span style=\"font-weight: 400\">In this blog, we\u2019ll go over why compliance with the financial sector cybersecurity regulations are important for these <\/span><span style=\"font-weight: 400\">companies and what the regulations demand.\u00a0<\/span><\/p>\n<p style=\"text-align: center\"><b>[Related: <\/b><a href=\"https:\/\/cmitsolutions.com\/bellevue-wa-1140\/blog\/accounting-firms-guide-to-safeguarding-client-data\/\"><b>Accounting Firms\u2019 Guide to Safeguarding Client Data<\/b><\/a><b>]<\/b><\/p>\n<h2><span style=\"font-weight: 400\">Why Are Compliance and Regulatory Frameworks Essential for Financial Services Companies?<\/span><\/h2>\n<p><span style=\"font-weight: 400\">First and foremost, financial services companies rely on quality IT to ensure they deliver services safely and retain secure systems, which usually handle extremely sensitive information.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">These financial institutions include the following, among others:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Commercial banks<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Investment banks<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Insurance companies<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Brokerage firms<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">CPA firms<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Wealth management services<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Mutual funds<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Credit unions<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Such firms handle highly confidential data, including names, addresses, bank account information and credit card information.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Disruption or unauthorized access of financial services firms\u2019 systems can result in devastation. Dollars aren\u2019t the only matter at risk. If cybercriminals breach confidential information, it can easily shatter financial services firms\u2019 reputations.<\/span><\/p>\n<p>It\u2019s critical that financial institutions adhere to financial sector cybersecurity regulations and remain diligent in mitigating cybersecurity risks while complying with mandatory regulatory frameworks.<\/p>\n<p style=\"text-align: center\"><b>[Related: <\/b><a href=\"https:\/\/cmitsolutions.com\/bellevue-wa-1140\/blog\/healthcare-hipaa-compliance-checklist\/\"><b>Healthcare HIPAA Compliance Checklists<\/b><\/a><b>]<\/b><\/p>\n<h2><span style=\"font-weight: 400\">Key Laws and Regulations<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Financial sector cybersecurity regulations are absolutely essential for financial firms, staying up to date on all the latest regulations and knowing which ones are mandatory can be difficult.<\/span><\/p>\n<p><span style=\"font-weight: 400\">The following laws and regulations aim to support customer data security and information breach resilience.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400\">1. The European Union General Data Protection Regulation (EU-GDPR)<\/span><\/h3>\n<p><b>What is it?<\/b><\/p>\n<p><span style=\"font-weight: 400\">The EU-GDPR is a security framework to protect the personal data of EU citizens.\u00a0<\/span><\/p>\n<p><b>Who must comply?\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400\">All businesses processing any EU citizen\u2019s data must comply with the EU-GDPR. This data may come from web form submissions, cookie data, marketing emails, IP address storage, posted photos and shredded documents.<\/span><\/p>\n<p><b>Is it mandatory?\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400\">Regardless of location, if a business processes any EU citizen\u2019s data, it must comply with the EU-GDPR. <\/span><a href=\"https:\/\/www.pwc.com\/us\/en\/increasing-it-effectiveness\/publications\/assets\/pwc-gdpr-series-pulse-survey.pdf\"><span style=\"font-weight: 400\">A recent survey<\/span><\/a><span style=\"font-weight: 400\"> reports that 92% of U.S. companies categorize EU-GDPR compliance as a top priority.<\/span><\/p>\n<p><a href=\"https:\/\/gdpr.eu\/compliance\/\"><span style=\"font-weight: 400\">Learn more about EU-GDPR guidelines here.<\/span><\/a><\/p>\n<h3><span style=\"font-weight: 400\">2. The United Kingdom General Data Protection Regulation (UK-GDPR)<\/span><\/h3>\n<p><b>What is it?<\/b><\/p>\n<p><span style=\"font-weight: 400\">The UK-GDPR is a security framework that focuses solely on protecting the personal data of U.K. citizens. Since Brexit removed the U.K. from any EU policy affiliations, the country has created a separate version of the EU-GDPR.\u00a0<\/span><\/p>\n<p><b>Who must comply?<\/b><\/p>\n<p><span style=\"font-weight: 400\">All businesses processing the data of any U.K. citizen must comply with the UK-GDPR.<\/span><\/p>\n<p><b>Is it mandatory?<\/b><\/p>\n<p><span style=\"font-weight: 400\">Regardless of location, if a business processes any U.K. citizen\u2019s data, it must comply with the UK-GDPR.<\/span><\/p>\n<p><a href=\"https:\/\/ico.org.uk\/for-organisations\/uk-gdpr-guidance-and-resources\/\"><span style=\"font-weight: 400\">Learn more about UK-GDPR guidelines here.<\/span><\/a><\/p>\n<p style=\"text-align: center\"><b>[Related: <\/b><a href=\"https:\/\/cmitsolutions.com\/bellevue-wa-1140\/blog\/phishing-vs-spoofing-similarities-differences-and-how-to-prevent-them\/\"><b>Phishing vs. Spoofing: Similarities, Differences and How To Prevent Them<\/b><\/a><b>]<\/b><\/p>\n<h3><span style=\"font-weight: 400\">3. The Sarbanes-Oxley (SOX) Act<\/span><\/h3>\n<p><b>What is it?<\/b><\/p>\n<p><span style=\"font-weight: 400\">Legislators created the SOX Act in 2002 to protect investors from financial scams. SOX includes best security practices and internal checks for avoiding fraud, as well as guidelines to ensure financial institutions address common cybersecurity risks (e.g., phishing attacks).<\/span><\/p>\n<p><b>Who must comply?<\/b><\/p>\n<p><span style=\"font-weight: 400\">All public companies and organizations in the U.S., including those in the financial sector, must comply with the SOX Act.\u00a0<\/span><\/p>\n<p><b>Is it mandatory?<\/b><\/p>\n<p><span style=\"font-weight: 400\">Yes. If a public company or organization does not comply with SOX, it could risk public stock exchange delisting, loss of officers liability insurance, removal of directors and\/or additional penalties.<\/span><\/p>\n<p style=\"text-align: center\"><a href=\"https:\/\/www.upguard.com\/blog\/sox-compliance\"><span style=\"font-weight: 400\">Learn more about SOX Act guidelines here.<\/span><\/a><\/p>\n<h3><span style=\"font-weight: 400\">4. Payment Card Industry (PCI) Data Security Standards (DSS)<\/span><\/h3>\n<p><b>What is it?<\/b><\/p>\n<p><span style=\"font-weight: 400\">The PCI DSS is a set of standards aiming to reduce credit card fraud and protect credit cardholders\u2019 personal information. Additionally, the PCI DSS controls focus on protecting data at these three stages:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Processing<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Storage<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Transfer<\/span><\/li>\n<\/ul>\n<p><b>Who must comply?<\/b><\/p>\n<p><span style=\"font-weight: 400\">All businesses or organizations that process customer credit card data must comply with the PCI DSS.<\/span><\/p>\n<p><b>Is it mandatory?<\/b><\/p>\n<p><span style=\"font-weight: 400\">Yes. Institutions worldwide recognize the PCI DSS, and it is mandatory for all organizations, merchants and payment solution providers who handle customer credit card data.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.upguard.com\/resources\/pci-compliance-without-the-headache\"><span style=\"font-weight: 400\">Learn more about PCI DSS guidelines here.<\/span><\/a><\/p>\n<p style=\"text-align: center\"><b>[Related: <\/b><a href=\"https:\/\/cmitsolutions.com\/bothell-wa-1091\/blog\/how-managed-it-can-help-ensure-hipaa-compliance\/\"><b>How Managed IT Can Help Ensure HIPAA Compliance<\/b><\/a><b>]<\/b><\/p>\n<h3><span style=\"font-weight: 400\">5. The Bank Secrecy Act (BSA)<\/span><\/h3>\n<p><b>What is it?<\/b><\/p>\n<p><span style=\"font-weight: 400\">The BSA, also known as the Currency and Foreign Transactions Report Act, centers on preventing financial firms from laundering money (either willingly or via cyberattack).\u00a0<\/span><\/p>\n<p><b>Who must comply?<\/b><\/p>\n<p><span style=\"font-weight: 400\">All national banks and other financial institutions in the U.S. accepting money from customers must comply with the BSA. They must use controls to detect and deter laundering, identify terrorist financing and implement a plan for post-incident control.<\/span><\/p>\n<p><b>Is it mandatory?<\/b><\/p>\n<p><span style=\"font-weight: 400\">The BSA is mandatory for national banks, federal branches, foreign bank agencies, federal savings associations and all other U.S. financial institutions that accept money from customers.<\/span><\/p>\n<p><a href=\"https:\/\/www.occ.treas.gov\/topics\/supervision-and-examination\/bsa\/index-bsa.html\"><span style=\"font-weight: 400\">Learn more about BSA guidelines here.<\/span><\/a><\/p>\n<h3><span style=\"font-weight: 400\">6. The Gramm-Leach-Bliley Act (GLBA)<\/span><\/h3>\n<p><b>What is it?<\/b><\/p>\n<p><span style=\"font-weight: 400\">The GLBA requires all financial institutions to establish security controls to protect customer information. Institutions must also tell their customers what types of data they gather and share.<\/span><\/p>\n<p><b>Who must comply?<\/b><\/p>\n<p><span style=\"font-weight: 400\">All U.S. organizations that take part in the following must comply with the GLBA:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Selling financial products or services<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Selling financial or investment advice<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Offering financial products or services<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Provide financial loans<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Offering financial or investment advice\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Selling insurance<\/span><\/li>\n<\/ul>\n<p><b>Is it mandatory?<\/b><\/p>\n<p><span style=\"font-weight: 400\">Yes. If you are a U.S. company or organization that deals with the exchange of financial information, you must comply with the GLBA. If you do not, you risk dealing with costly penalties or even imprisonment (up to five years).<\/span><\/p>\n<p><a href=\"https:\/\/www.trellix.com\/en-us\/products\/endpoint-security.html\"><span style=\"font-weight: 400\">Learn more about GLBA guidelines here.<\/span><\/a><\/p>\n<h3><span style=\"font-weight: 400\">7. The Payment Services Directive (PSD 2)<\/span><\/h3>\n<p><b>What is it?<\/b><\/p>\n<p><span style=\"font-weight: 400\">The PSD 2 includes regulations for protecting online payments, customer data security and strong customer authentication in the EU.<\/span><\/p>\n<p><b>Who must comply?<\/b><\/p>\n<p><span style=\"font-weight: 400\">All banks and financial institutions operating in the EU must comply with PSD 2.<\/span><\/p>\n<p><b>Is it mandatory?<\/b><\/p>\n<p><span style=\"font-weight: 400\">Yes. All EU companies in the financial sector must comply with PSD 2 or risk receiving a fine of up to EUR 20.000.000 or 4% of their annual revenue.<\/span><\/p>\n<p><a href=\"https:\/\/www.jotform.com\/psd2-regulation\/\"><span style=\"font-weight: 400\">Learn more about PSD 2 guidelines here.<\/span><\/a><\/p>\n<p style=\"text-align: center\"><b>[Related: <\/b><a href=\"https:\/\/cmitsolutions.com\/bellevue-wa-1140\/blog\/the-importance-of-cybersecurity-for-engineering-firms\/\"><b>The Importance of Cybersecurity for Engineering Firms<\/b><\/a><b>]<\/b><\/p>\n<h3><span style=\"font-weight: 400\">8. The Federal Financial Institutions Examination Council (FFIEC)<\/span><\/h3>\n<p><b>What is it?<\/b><\/p>\n<p><span style=\"font-weight: 400\">The FFIEC is an interagency body that offers financial institutions uniform cybersecurity practices.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">The following entities govern the FFIEC:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The Board of Governors of the Federal Reserve<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The Federal Deposit Insurance Corporation<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The Office of the Comptroller of the Currency<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The National Credit Union Administration<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The Consumer Financial Protection Bureau\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">The FFIEC outlines best practices in a variety of categorized handbooks, including those focusing on audits, information security, <\/span><a href=\"https:\/\/cmitsolutions.com\/it-services\/managed-services\/\"><span style=\"font-weight: 400\">tech services outsourcing<\/span><\/a><span style=\"font-weight: 400\">, technology service provider supervision <\/span><a href=\"https:\/\/ithandbook.ffiec.gov\/\"><span style=\"font-weight: 400\">and more<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n<p><b>Who must comply?<\/b><\/p>\n<p><span style=\"font-weight: 400\">All federally supervised financial institutions and their U.S. subsidiaries must comply with FFIEC regulations and guidelines.<\/span><\/p>\n<p><b>Is it mandatory?<\/b><\/p>\n<p><span style=\"font-weight: 400\">The FFIEC is mandatory for federally supervised financial institutions in the U.S. Noncompliance can result in fines of up to $2 million.<\/span><\/p>\n<p><a href=\"https:\/\/ithandbook.ffiec.gov\/\"><span style=\"font-weight: 400\">Learn more about FFIEC guidelines here.<\/span><\/a><\/p>\n<h2><span style=\"font-weight: 400\">Stay Up to Date With CMIT Solutions of Bellevue<\/span><\/h2>\n<p class=\"p1\">Compliance with financial sector cybersecurity regulations is not just a legal obligation but also a crucial aspect of building and maintaining trust in the financial industry.<\/p>\n<p><span style=\"font-weight: 400\">Working with professionals, such as those at <\/span><a href=\"https:\/\/cmitsolutions.com\/bellevue-wa-1140\/\"><span style=\"font-weight: 400\">CMIT Solutions of Bellevue<\/span><\/a><span style=\"font-weight: 400\">, streamlines your financial firm\u2019s cybersecurity processes and keeps your business current on all cybersecurity regulations and laws.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">At CMIT Solutions, we have years of experience with a variety of professional industries, including those in the finance sector. We understand that each company has its own unique requirements and goals.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Want to learn more about financial sector cybersecurity regulations service or what we offer? <\/span><a href=\"https:\/\/cmitsolutions.com\/bellevue-wa-1140\/contact-us\/\"><span style=\"font-weight: 400\">Get in touch with us today<\/span><\/a><span style=\"font-weight: 400\"> to see how our cybersecurity services help your business thrive.<\/span><\/p>\n<p><i><span style=\"font-weight: 400\">Featured image via <\/span><\/i><a href=\"https:\/\/unsplash.com\/photos\/0Xgfw-FFTOM\"><i><span style=\"font-weight: 400\">Unsplash<\/span><\/i><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Financial sector cybersecurity regulations are essential in today&#8217;s digital age, where the&#8230;<\/p>\n","protected":false},"author":34,"featured_media":555,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-554","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-local-it"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/cmitsolutions.com\/bellevue-wa-1140\/wp-json\/wp\/v2\/posts\/554","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cmitsolutions.com\/bellevue-wa-1140\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cmitsolutions.com\/bellevue-wa-1140\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cmitsolutions.com\/bellevue-wa-1140\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/cmitsolutions.com\/bellevue-wa-1140\/wp-json\/wp\/v2\/comments?post=554"}],"version-history":[{"count":0,"href":"https:\/\/cmitsolutions.com\/bellevue-wa-1140\/wp-json\/wp\/v2\/posts\/554\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cmitsolutions.com\/bellevue-wa-1140\/wp-json\/wp\/v2\/media\/555"}],"wp:attachment":[{"href":"https:\/\/cmitsolutions.com\/bellevue-wa-1140\/wp-json\/wp\/v2\/media?parent=554"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cmitsolutions.com\/bellevue-wa-1140\/wp-json\/wp\/v2\/categories?post=554"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cmitsolutions.com\/bellevue-wa-1140\/wp-json\/wp\/v2\/tags?post=554"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}