Key Cybersecurity Regulations and Standards Supporting the Financial Sector

In the financial sector, security and compliance are paramount. Here’s a comprehensive list of key cybersecurity regulations and standards that support the financial industry, ensuring protection against cyber threats and maintaining legal compliance.

Table of Contents

Payment Card Industry Data Security Standard (PCI DSS)

Overview: PCI DSS is a set of security standards designed to ensure that companies accepting, processing, storing, or transmitting credit card information maintain a secure environment.

Key Requirements:

Protect cardholder data
Maintain a secure network
Implement strong access control measures
Monitor and test networks
Maintain an information security policy

General Data Protection Regulation (GDPR)

Overview: GDPR is an EU regulation addressing data protection and privacy for individuals and the transfer of personal data outside the EU.

Key Requirements:

Lawful processing of personal data
Data subject rights
Data protection impact assessments
Data breach notification
Appointing a Data Protection Officer (DPO)

Sarbanes-Oxley Act (SOX)

Overview: SOX is a U.S. federal law aimed at protecting investors from fraudulent financial reporting by corporations.

Key Requirements:

Internal controls and procedures for financial reporting
Regular audits
Enhanced financial disclosures

Gramm-Leach-Bliley Act (GLBA)

Overview: GLBA requires financial institutions to explain how they share and protect their customers’ private information.

Key Requirements:

Safeguards Rule: Develop a written information security plan
Privacy Rule: Clear and conspicuous privacy notices
Pretexting Protection: Protect against unauthorized access to personal information

Federal Financial Institutions Examination Council (FFIEC) Cybersecurity Assessment Tool

Overview: This tool helps financial institutions identify their risks and determine their cybersecurity preparedness.

Key Requirements:

Inherent risk profile
Cybersecurity maturity assessment
Continuous improvement of cybersecurity practices

New York Department of Financial Services (NYDFS) Cybersecurity Regulation (23 NYCRR 500)

Overview: This regulation requires financial services companies operating in New York to establish and maintain a cybersecurity program.

Key Requirements:

Cybersecurity program, policies, and procedures
Designation of a Chief Information Security Officer (CISO)
Penetration testing and vulnerability assessments
Incident response planning

ISO/IEC 27001

Overview: An international standard for managing information security, providing a systematic approach to managing sensitive company information.

Key Requirements:

Information Security Management System (ISMS)
Risk assessment and treatment
Continuous monitoring and improvement

Financial Industry Regulatory Authority (FINRA) Cybersecurity Guidance

Overview: FINRA provides best practices and recommendations for member firms to protect their information systems and sensitive customer data.

Key Requirements:

Cybersecurity framework
Data governance
Access controls
Incident response
Customer protection

3-D Secure (3DS)

Overview: 3DS is a protocol designed to add an extra security layer for online credit and debit card transactions.

Key Requirements:

Authentication during online transactions
Steps such as password entry or biometric verification

Bank Secrecy Act (BSA) / Anti-Money Laundering (AML)

Overview: BSA/AML regulations require financial institutions to assist government agencies in detecting and preventing money laundering.

Key Requirements:

Reporting of suspicious activities
Record-keeping
Customer due diligence

These regulations and standards are crucial for enhancing the security of financial data, protecting against cyber threats, and ensuring compliance with legal requirements. By adhering to these guidelines, financial institutions can safeguard their operations and maintain the trust of their customers.