# Fintech Compliance and Regulatory Guidelines

## PCI DSS Compliance

### Level 1 Requirements (>6M transactions/year)
- **Network Security**: Firewall, network segmentation
- **Data Protection**: Encrypt cardholder data, mask PAN
- **Access Control**: Unique IDs, two-factor authentication
- **Monitoring**: Log access, file integrity monitoring
- **Testing**: Vulnerability scanning, penetration testing
- **Policies**: Information security policy, incident response

### Implementation Checklist
- [ ] Tokenize card data, never store full PAN
- [ ] Use validated payment processors (Stripe, Square)
- [ ] Implement Point-to-Point Encryption (P2PE)
- [ ] Regular security assessments and audits
- [ ] Staff training on data handling procedures

## SOX Compliance (Public Companies)

### Key Controls
- **ITGC**: IT General Controls for financial systems
- **Change Management**: Documented approval processes
- **Access Reviews**: Quarterly user access audits
- **Segregation of Duties**: Separate authorization/recording
- **Documentation**: Maintain audit trails and evidence

## GDPR/Privacy Regulations

### Data Processing Requirements
- **Lawful Basis**: Consent, contract, legitimate interest
- **Data Minimization**: Collect only necessary data
- **Purpose Limitation**: Use data only for stated purposes
- **Retention Limits**: Delete data when no longer needed
- **Data Subject Rights**: Access, rectification, erasure, portability

### Technical Safeguards
- **Privacy by Design**: Build privacy into system architecture
- **Encryption**: End-to-end encryption for personal data
- **Pseudonymization**: Replace identifiers with artificial ones
- **Data Loss Prevention**: Monitor and prevent unauthorized access

## Banking Regulations

### Open Banking (PSD2)
- **Strong Customer Authentication**: Multi-factor authentication
- **API Security**: OAuth 2.0, mutual TLS, certificate validation
- **Data Sharing**: Consent management, scope limitation
- **Fraud Prevention**: Real-time monitoring, risk scoring

### Anti-Money Laundering (AML)
- **Customer Due Diligence**: Identity verification, risk assessment
- **Transaction Monitoring**: Unusual pattern detection
- **Suspicious Activity Reporting**: Automated SAR generation
- **Record Keeping**: 5-year transaction history retention

## Testing Requirements

### Compliance Testing
- **Penetration Testing**: Annual external security assessments
- **Vulnerability Scanning**: Quarterly automated scans
- **Code Reviews**: Security-focused static analysis
- **Red Team Exercises**: Simulated attack scenarios

### Audit Preparation
- **Documentation**: Policies, procedures, evidence collection
- **Control Testing**: Validate effectiveness of security controls
- **Gap Analysis**: Identify compliance deficiencies
- **Remediation Planning**: Prioritize and track fixes

## Regional Considerations

### United States
- **CCPA**: California Consumer Privacy Act requirements
- **GLBA**: Gramm-Leach-Bliley Act for financial institutions
- **FFIEC**: Federal guidance for IT risk management
- **State Regulations**: Additional requirements by state

### European Union
- **PSD2**: Payment Services Directive
- **GDPR**: General Data Protection Regulation
- **MiFID II**: Markets in Financial Instruments Directive
- **EBA Guidelines**: European Banking Authority standards

### Asia-Pacific
- **PDPA**: Personal Data Protection Acts (Singapore, Thailand)
- **Privacy Act**: Australia's privacy legislation
- **PIPEDA**: Canada's Personal Information Protection
- **Local Banking**: Country-specific financial regulations