The year 2020 has revolutionized the fintech sector. People started to spend more time online, than offline, and therefore, new online services have appeared. What’s more, the rise in the use of different financial apps attract both hackers, and regulators. Regulators need to make sure that the data of users is protected and thieves are prevented from stealing it. And clients, at the same time, need to know how to reduce the risks of their private information from being stolen. In this blog post you will find information about the top banking and fintech security regulations in 2021.
CCPA (California Consumer Privacy Act)
One of the top banking and fintech security regulations in 2021 is CCPA. The new changes were added to the California Consumer Privacy Act, that call for even stronger data compliance. From the year 2021 the requirements will also apply to the data, affected by the Confidentiality of Medical Information Act, HIPAA or the Federal Policy for the Protection of Human Subjects. If you are planning to do business connected with finance or mobile banking in California, make the Confidentiality of sure to fulfill these data security requirements.
AMLD5 & AMLD6 (EU 5th and 6th Anti-Money Laundering Directives)
The next one in the list of top banking and fintech security regulations in 2021 is AMLD5 & AMLD6. These provisions came into force not long ago, in January 2021. These regulations focus on Anti-Money Laundering. Introduction of these provisions has expended the list of firms that now have to report ownership information and strengthen customer authentication standards. AMLD 6 will come into force in June 2021. The new regulations will include environmental, tax, and even cybercrime offences. This may lead to a situation when a wider range of actions online can be considered criminal.
PCI/DSS (Payment Card Industry Data Security Standard)
Payment Card Industry Data Security Standards are the regulations that need to be integrated with gatekeepers (PCI, PCI/DSS system) in order to allow payment processing. The CPoC standard was launched in 2019 and allows payments to be accepted through any tablet or smartphone, without adding special software. The amount per transaction is limited, because there is no possibility to accept PIN entries on the phone. However, it is expected that the new CPoC standard will be launched, which will allow to expand the amount of money that can be sent per transaction.
Monetary Authority of Singapore Technology Risk Management Guidelines
The next in the top banking and fintech security regulations in 2021 is Monetary authority of Singapore technology risk management guidelines. These regulations were introduced because of the rise in the level of cyber crime and came into force January 2021. The guidelines require more precise verification of the third-party payment providers, improved penetration testing and risk mitigation strategies. The guidelines also call for a chief information officer and a chief information security officer who are able to manage technology and cyber risks.
Last but not least on our list of the top banking and fintech security regulations in 2021 is GLB, also known as Financial Services Modernization Act. These regulations are connected with financial institutions and how they share financial data. In order to increase data security, requirements such as expanding audit trail obligations, time-limiting data retention and other changes may be introduced.
In conclusion, we can see that with the changes in the fintech world, come new regulations and guidelines. On the one hand, it may be more problematic for the entrepreneur to start an online business now, because of the number of new regulations. On the other hand, these guidelines are aimed at protecting the users’ private data and to limit cybercrime. By working with Universepay you can be sure that your business meets all requirements, as we are always aware about new regulations coming into force. We can also prepare all documentation; this will significantly save you time. Do not hesitate to contact our professionals to get a consultation. You can connect with us by clicking the button ‘Apply’ or just by sending us an email.