Whats keeping compliance leaders up at night? Struggles and strategies for 2025

In fact, Fink’s change of heart and interest have helped legitimize digital assets. “We do believe that if we can create more tokenization of assets and securities, that’s what bitcoin is, it could revolutionize finance,” Fink said in July. In the United Kingdom, the government released a white paper on the regulation of AI, and its response to feedback is expected in the coming months. UK regulators also issued a feedback statement to their discussion paper on AI and machine learning in October 2023, and the debate on issues raised will surely continue this year.

In the US, a critical aspect of cybersecurity and data privacy assurance is the effective management of third-party risk. Many breaches have been traced to third-party vulnerabilities in recent years, IT professionals have said. As a result, organizations and regulators are emphasizing the importance of due diligence, heightened monitoring, and third-party vendors’ risk management programs. As regulatory demands grow more complex, organizations are adopting technology and AI to streamline their compliance efforts.

SEC Chair Gary Gensler might become more assertive with the agency’s agenda if he believes his tenure might end if President Biden’s re-election appears doubtful in November. The SEC’s regulatory agenda includes 25 rulemakings slated for final adoption in the spring or fall of 2024. Cybercrime comes in many forms, from cyberattacks on corporate networks to data breaches to customer fraud. According to the most recent Internet Organised Crime Threat Assessment from Europol, cybercrime is becoming “more aggressive and confrontational” across several forms, including high-tech crimes, data breaches, and sexual extortion. The focus on diversity, equity & inclusion (DEI) will also progress in 2024.

Regulatory Compliance in Cybersecurity

There should also be an option to have a question addressed by an actual person. The advancement of these technologies promises more guidance and similar warnings in the years to come. Considering how the new final CRA regulations will affect your bank is one of the most important compliance considerations going right now. The regulation has a compliance date of January 1, 2026, but the court has stayed (i.e., paused) that date while the litigation proceeds, which is likely to extend well into 2025. There have been rumblings of a new federal privacy law for a few years now, and after many states have passed their own privacy legislation. It is becoming increasingly difficult to manage consumer privacy within a complicated patchwork of state laws.

• Digital transformation will continue to be a key theme, with regulators likely to leverage technology for more efficient oversight and reporting.
• As with NIST, the ISO provides a set of best practices for specific IT challenges.
• The UK has finalized the Sustainability Disclosure Requirements, investment labeling regime, and its anti-greenwashing rule while moving forward on changes to the new Listing Rules.
• Companies processing over 6 million annual transactions have greater regulatory compliance responsibilities than smaller businesses.
• The benefit of better data is that it helps organizations with business continuity when disaster strikes.

“To overcome these challenges, compliance teams need innovative and collaborative software,” Azhalavan explains. Compliance teams must align policies, controls, and risks with the evolving regulatory compliance landscape, requiring collaboration between compliance and chief information officers to address cybersecurity challenges effectively. We chatted with Pooja Azhalavan, Product Marketing Manager at Resolver, to dive deep into common compliance challenges and understand how modern AI solutions like RegTech revolutionize compliance efforts.

Risk & Fraud

It’s these surprises that keeps the compliance field interesting, and as a result compliance professionals must always keep on their toes. Another evergreen topic, but there are some particular areas in which we can expect to see some activity in 2025. We can expect to see more publications and guidance on this point, which is welcome.

Compliance policies define how the organization complies with https://officialbet365.com/ regulatory requirements. IT organizations in Europe can use NIST standards as a compliance baseline. Many companies also rely on documents from the International Organization for Standardization (ISO).

Automakers must also comply with environmental laws, such as those set by the Environmental Protection Agency (EPA), particularly regarding fuel economy and emissions. Globally, automakers face additional rules related to cybersecurity, autonomous driving technology and sustainability reporting. In Diligent’s 2024 Director Confidence Index, 62% of public company board members said the regulatory environment is affecting their company’s ability to execute on strategy.

Companies have developed more sophisticated third-party risk management systems because security incidents with vendors have doubled. The agencies issued their final rule on AVMs in July of 2024, with an effective date of October 1, 2025. Procedures must include conducting random sampling testing and reviews, and be designed to ensure compliance with nondiscrimination laws such as the Equal Credit Opportunity Act and Fair Housing Act. This likely means some sort of model validation must be performed to meet the requirements, so banks should use the time prior to October to ensure this is in place. Legal compliance refers to following the laws passed by a governing body, such as federal, state or local laws. Regulatory compliance, on the other hand, means adhering to specific rules or standards set by regulatory agencies (e.g., the SEC, FDA or EPA).