The COVID-19 pandemic has pushed banks and credit unions to accelerate digital transformation plans as consumers across the country have stopped visiting branches and ATMs and suddenly switched to digital and mobile banking options . Many banks have successfully made this transition.
The pandemic has revealed gaps in both security and technical infrastructure across the financial sector. Cyber security threats and fraud have increased during the pandemic. Organized crime networks and fraudsters around the world saw the sudden shift to digital channels and the trillions of dollars that the US government was pumping into the economy as a perfect opportunity for account take-over schemes, bogus business loans and other criminal activity.
To enable safer digital commerce, lawmakers and financial regulators have put in place, or seek to put in place, a number of new policies and regulations that would have a significant impact on the financial sector.
New regulations banks should know about
One of the most important developments has been highlighted by the Financial Action Task Force (FATF), a global watchdog on money laundering and terrorist financing. FATF Guide to Digital Identity Details Best Practices for Financial Institutions to Apply Customer Due Diligence to Digital Identity Verification and Authentication for Remote Account Opening and Integration . It also describes how the use of third parties between regulated entities can be used by financial institutions to meet the requirements.
By understanding the most significant regulatory changes affecting the financial industry and adopting new processes and technologies, banks and credit unions can comply with regulations while ensuring the security of sensitive customer data.
They must take a multi-layered approach to security that integrates technologies such as adaptive multifactor authentication, real-time risk analysis for fraud detection and mobile application security to stop fraud plaguing channels. digital. Only then can they become the first digital businesses they strive to be, while maintaining compliance and securely delivering the online and mobile services their customers desire.
For more information, contact us at Smith & Bernards Associates.
Smith & Bernards Associates
320 Park Avenue – 31st Floor, New York, NY 10022, USA
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Our firm has a team of lawyers, consultants and others with over 100 years of combined experience in the securities industry and securities law. Since 1990, we have represented thousands of investors across the country to recover losses. We have represented clients in federal and state courts and in arbitrations through the Financial Industry Regulatory Authority (FINRA), New York Stock Exchange Inc. (NYSE), American Arbitration Association (AAA) and in private arbitration actions.
This version was posted on openPR.