Financial Services Compliance Law and Regulations – Overview
Financial services compliance refers to the responsibility of the financial institutions to safeguard the consumer’s financial data and money that they hold and manage. It involves adhering to internal and external laws and regulations. However, there has been a surge in fines due to the nonadherence of these laws and regulations. Some notable incidents in 2021 are the $1.4 million fine imposed by the U.S. Treasury over sanctions violations and an $8 million fine by the SEC. This surge in fines has made financial institutions relook the regional and international laws and regulations. Some common laws and regulations in this sector are: Gramm-Leach-Bliley Act Payment Services Directive New York Department of Financial Services Payment Card Industry Data Security Standard Gramm-Leach-Bliley Act The Gramm-Leach-Bliley Act or GLBA came into effect in 1999. It is a set of financial data security standards requiring the Federal Trade Commission (FTC) to st...