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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