If you work at a financial services firm, you’re well aware of the amount of personal data that you handle each and every day, and you know protecting that data is a top priority. Luckily, specific regulations and guidelines mandatory by law exist to help financial services firms strengthen their security and keep their clients’ data safe.
In this blog, we’ll go over the top eight cybersecurity regulations for financial firms and what those regulations entail.
[Related: How Accounting Firms Can Protect Their Client Data]
Key Laws and Cybersecurity Regulations
Staying up to date on the most recent regulations and guidelines can be overwhelming. Fortunately, with companies like CMIT Solutions of Bothell, you can trust that your financial firm remains compliant.
Legislators designed the following financial regulatory guidelines to facilitate data security and breach resilience.
1. The European Union General Data Protection Regulation (EU-GDPR)
The EU-GDPR is a security act that secures the personal data of EU citizens. All businesses processing information from EU citizens must comply with the GDPR, regardless of where they’re located.
This type of information collection can include the following:
- Web form submissions
- Cookie data
- Marketing emails
- IP address storing
A recent survey reports that 92% of U.S. companies cite EU-GDPR compliance as a major priority.
2. The United Kingdom General Data Protection Regulation (UK-GDPR)
The UK-GDPR is a security framework similar to the EU-GDPR, except it protects the data of only U.K. citizens. Because of Brexit, the U.K. has created its own guidelines that are unaffiliated with the EU. Just like with the EU-GDPR, if you process any U.K. citizen’s data, you must comply with the UK-GDPR.
[Related: How Would Multi-Layer Defense Help Your Company?]
3. The Sarbanes-Oxley (SOX) Act
Legislators created the SOX Act to protect U.S. citizens from financial scams and fraud. This act encourages internal financial checks and lists guidelines for addressing common cybersecurity risks, and it’s mandatory for all public U.S. companies and organizations.
4. Payment Card Industry (PCI) Data Security Standards (DSS)
The PCI DSS outlines guidelines for reducing credit card fraud and protecting credit card users’ data in the processing, storage and transfer stages. All organizations that process consumer credit card data must comply with the PCI DSS.
[Related: Are You at Risk? Here Are the Industries With the Highest Cyber Security Risks]
5. The Bank Secrecy Act (BSA)
The BSA, also known as the Currency and Foreign Transactions Report Act, aims to prevent money laundering, whether intentional or due to cyberattack or data breach. All U.S. financial institutions that accept money from customers must comply with the BSA.
6. The Gramm-Leach-Bliley Act (GLBA)
The GLBA establishes guidelines for financial institutions to protect confidential customer information. It also requires that these companies inform their customers of what types of data they gather and share. All U.S. companies that receive financial information from customers must comply with the GLBA.
7. The Payment Services Directive (PSD 2)
The PSD 2 protects online payments and customer data security in the EU. All EU banks and financial institutions must comply with the PSD 2 or risk facing a fine of up to EUR 20.000.000 or 4% of their annual revenue.
[Related: How Managed IT Can Help Ensure HIPAA Compliance]
8. The Federal Financial Institutions Examination Council (FFIEC)
The FFIEC is an interagency body that sets uniform cybersecurity regulations for all U.S. financial institutions.
Moreover, the FFIEC outlines best practices in a variety of categories, including audits, information security, tech services outsourcing, third-party service provider supervision and more.
Stay Up to Date With CMIT Solutions of Bothell
Working with professionals, such as those at CMIT Solutions of Bothell, streamlines your financial firm’s cybersecurity process and keeps your firm current on all cybersecurity regulations and laws.
CMIT Solutions of Bothell has years of experience with a variety of professional industries, including those in the finance sector. We understand that each company has its own unique needs and goals.
Want to learn more about what we offer? Get in touch with us today to see how our cybersecurity services help your business thrive.
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