Payments compliance required you to adhere to laws, regulations and industry standards governing FIAT currency financial transactions. It ensures the security, integrity and transparency of payment processes, protecting businesses and consumers from fraud.
Key cross industry regulations include the Payment Card Industry Data Security Standard (PCI DSS), PSD2 which mandates secure handling of cardholder data, and the more comprehensive SWIFT Customer Security Framework, CHAPs, TARGET2 for the major currencies and many more jurisdiction specific compliance regimes. There are many more compliance requirements across industries and locations. These complex attestations are essential for financial institutions and organisations involved in the payments flow to demonstrate adherence to established security standards and regulatory requirements.
Effective payments compliance minimizes risks, enhances customer trust and avoids legal penalties, ensuring smooth and secure transaction processing across various jurisdictions.
PCI DSS is a set of security standards designed to protect credit card data. It outlines requirements for businesses that handle, store, or transmit cardholder information, ensuring a secure environment for transactions. Compliance with PCI DSS is mandatory for those accepting or processing credit cards.
PSD2 is a European Union regulation that aims to make electronic payments more secure and innovative. It requires banks to allow third-party payment providers to access customer accounts with their consent. This opens up opportunities for new financial services but also raises concerns about security and data protection.
SWIFT CSP - The SWIFT CSP mandates all SWIFT users to attest their compliance with the Customer Security Controls Framework(CSCF), which includes a set of mandatory and advisory controls. This initiative aims to enhance the cybersecurity posture of the global financial community by increasing the cyber maturity of its members. The CSP is structured around securing the local environment, preventing and detecting fraud in commercial relationships, and continuously sharing information to defend against cyber threats.
CHAPS, operated by the Bank of England, has a 'trust and verify' approach, where Direct Participants must self-attest to their compliance with CHAPS rules and requirements. This process involves declaring instances of non-compliance and the Bank may also seek to verify certain areas. Compliance with technical and operational requirements is ongoing, including access to the SWIFT network and appropriate interfaces for message processing.
TARGET2 users are required to submit a self-attestation concerning the protection of their SWIFT infrastructure as part of the SWIFT CSP. This self-attestation is a measure against increasing risks of cyber-attacks in the financial world, aiming to reinforce the security of the global financial community.
FedLine, operated by the US Federal Reserve Banks, is a suite of electronic payment solutions pivotal to the U.S. financial infrastructure, facilitating efficient, reliable, and secure transactions. To bolster the security and resilience of this critical system, the Federal Reserve has instituted the FedLine Solutions Security and Resiliency Assurance Program. This comprehensive program mandates all financial institutions utilizing FedLine services to conduct an annual self-assessment of their compliance with specific FedLine security requirements.
Lynx, from the Bank of Canada, mandates participants to meet comprehensive regulatory, financial, cyber security, and operational requirements. Participants must qualify for Payments Canada membership, adhere to risk-based Canadian prudential regulation, and are required to attest to meeting the Bank’s cyber security requirements.
Single Euro Payments Area (SEPA) in Europe aims to harmonize electronic payments across the EU, making cross-border payments as easy as domestic ones. Participants must ensure compliance with EU regulations, including the Payment Services Directive (PSD/PSD2).
Establish a core set of Evidences required across multiple Payments regulations and simplify the collection and review processes generating significant cost and effort efficiencies
Conduct periodic assessments to ensure adherence to evolving payment security standards and regulations
Ensure lawful handling of payment data, adhering to regional data privacy regulations
Keep track of changes in relevant regulations and ensures that compliance practices are updated accordingly to meet new requirements
Maintain a comprehensive audit trail of all transactions and compliance activities, providing detailed documentation for regulatory reviews and audits
Evaluate and monitor third-party vendors to ensure they comply with relevant security and regulatory standards, mitigating potential risks from external partners
SWIFT CSF
Bank of England CHAPS
TARGET2
Canada Lync
US Fedline
PCIDSS
PSD2
ISO 27002
