Regulatory compliance is the act of adhering to local, national and internationally accepted standards for conducting business. Virtually every industry operates within a regulatory framework, although the regulatory forest is particularly formidable when it comes to financial services, and there is a good reason for that.
The Need for a Robust Regulatory Framework
Over the past 30 years, technology has blurred traditional boundaries within which businesses operate as well as the means by which they conduct financial transactions. This has raised important issues regarding how best to protect the interests of everyone from retail customers to financial institutions themselves.
As a result, both national and international regulatory frameworks have been bolstered in an attempt to prevent abuse and fraud with a keen eye on the burgeoning digital economy. The goal of the resulting compliance regulations is four-fold:
- To establish market confidence – It is essential that all players have confidence in the financial system. The regulatory framework helps establish this.
- To promote financial stability – A stable financial system is one capable of cultivating prosperity and ensuring the common good.
- To protect consumers – Today’s digital economy provides unprecedented opportunities for consumers and, unfortunately, hackers and other digital fraudsters who would prey on them.
- To prevent financial crime – A robust regulatory framework leaves no avenue criminals can travel to execute their nefarious plans and ruin people’s lives.
PCI DSS (Payment Card Industry Data Security Standard) Regulation
One particular area of concern for regulators is the credit/debit card industry. It is estimated that global credit card fraud reached £30 billion in 2021. And while that number begs comprehension, it would be many times worse if Payment Card Industry (PCI) Data Security Standards (DSS) were not as robust and responsive as they are. Compliance with PCI DSS standards is mandatory for all organizations that accept payment from VISA, MasterCard, American Express, Discover and the Japan Credit Bureau (JCB).
When a business is PCI compliant, customers can rest assured knowing their payment card data is handled in accordance with rigorous financial services standards involving firewalls, encryption and access to their personal data and that strict measures are in place to monitor and regulate access to network resources.
With more than 20 years of experience in financial supervision, regulatory change implementation and the development of data solutions in the finance industry, FinregE is ideally suited to provide expert regulatory compliance management for your business. To learn more, contact FinregE by calling +442045370860 or emailing firstname.lastname@example.org.