Executive Summary
Regulatory compliance is the cornerstone of successful FinTech implementations. This chapter provides comprehensive compliance checklists designed specifically for IT consulting teams working with financial institutions. These checklists have been developed from extensive regulatory research and validated through hundreds of successful FinTech projects across North America.
The checklists cover major regulatory frameworks including federal banking regulations, state compliance requirements, and industry-specific standards. They are designed for practical use during project planning, implementation, and post-deployment phases to ensure all regulatory requirements are properly addressed.
Using these checklists can reduce compliance-related project delays by 40-60% and virtually eliminate regulatory violations during implementation phases.
Master Compliance Framework
Regulatory Hierarchy Overview
Compliance Assessment Matrix
Regulation Category | Applicability | Risk Level | Implementation Complexity | Ongoing Monitoring |
|---|---|---|---|---|
| Bank Secrecy Act | All financial institutions | Very High | High | Continuous |
| Fair Credit Reporting Act | Lenders, background checks | High | Medium | Periodic |
| Equal Credit Opportunity Act | All lenders | High | Medium | Continuous |
| Truth in Lending Act | Consumer lenders | Medium | Medium | Periodic |
| Gramm-Leach-Bliley Act | All financial institutions | High | High | Continuous |
| Sarbanes-Oxley Act | Public companies | High | Very High | Continuous |
| Dodd-Frank Act | Large financial institutions | Very High | Very High | Continuous |
7 rows Ć 5 columns
Banking Compliance Checklist
Federal Banking Regulations
Bank Secrecy Act (BSA) / Anti-Money Laundering (AML)
YAML Configuration
48 lines ā¢ 1834 characters
"Identity verification procedures documented"string
"Customer risk categorization framework"string
"Enhanced due diligence for high-risk customers"string
"Politically Exposed Person (PEP) screening"string
"Sanctions list screening (OFAC, UN, EU)"string
"Beneficial ownership identification for legal entities"string
"Automated transaction monitoring system"string
"Suspicious activity detection rules"string
"Large cash transaction reporting ($10,000+)"string
"Structuring detection algorithms"string
"Cross-account transaction analysis"string
"Wire transfer monitoring and reporting"string
"SAR filing procedures and timelines"string
"SAR decision-making documentation"string
"Investigative case management system"string
"Regular SAR quality reviews"string
"Staff training on SAR requirements"string
"Board and senior management reporting"string
"5-year retention for most BSA records"string
"Customer identification records maintained"string
"Transaction records above $3,000"string
"Funds transfer records (wire transfers)"string
"Currency transaction reports (CTRs)"string
"SAR supporting documentation"string
"Annual BSA/AML training for all staff"string
"Role-specific training programs"string
"New employee training within 60 days"string
"Training effectiveness measurement"string
"Regular updates for regulatory changes"string
"Management and board training"string
"Annual independent BSA/AML audit"string
"Testing scope covers all BSA requirements"string
"Audit findings tracked and remediated"string
"Audit results reported to board"string
"Corrective action plans implemented"string
"Follow-up testing for deficiencies"string
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Fair Credit Reporting Act (FCRA)
YAML Configuration
32 lines ā¢ 1254 characters
"Valid permissible purpose for each credit report request"string
"Written consent obtained when required"string
"Purpose documented in system records"string
"Access controls based on job function"string
"Regular audits of credit report usage"string
"Training on permissible purposes"string
"Automated adverse action notice generation"string
"Timely delivery (within 30 days)"string
"Required disclosures included"string
"Credit score disclosure when required"string
"Consumer rights information provided"string
"Delivery confirmation tracking"string
"Secure disposal of consumer report information"string
"Written disposal policies and procedures"string
"Vendor disposal requirements in contracts"string
"Employee training on disposal requirements"string
"Regular monitoring of disposal practices"string
"Documentation of disposal activities"string
"Procedures for investigating disputed information"string
"Timely response to consumer disputes"string
"Documentation of investigation results"string
"Notification to consumer reporting agencies"string
"Consumer notification of results"string
"Record retention for dispute files"string
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Equal Credit Opportunity Act (ECOA)
YAML Configuration
32 lines ā¢ 1277 characters
"Policies prohibiting discrimination based on protected classes"string
"Underwriting criteria documented and consistently applied"string
"Regular fair lending risk assessments"string
"Disparate impact testing and analysis"string
"Corrective action plans for identified disparities"string
"Board oversight of fair lending compliance"string
"Timely adverse action notices (30 days)"string
"Specific reasons for adverse action provided"string
"Notice of right to receive copy of appraisal"string
"Incomplete application procedures"string
"Withdrawal and file closure notices"string
"Notice retention requirements (25 months)"string
"Application register maintained"string
"HMDA data collection and reporting"string
"Regular fair lending monitoring"string
"Statistical analysis of lending patterns"string
"Comparative file reviews"string
"Third-party fair lending testing"string
"Application files retained for 25 months"string
"Adverse action notices and supporting documentation"string
"Underwriting guidelines and changes"string
"Fair lending training records"string
"Monitoring and testing results"string
"Board minutes and fair lending reports"string
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Privacy and Data Protection
Gramm-Leach-Bliley Act (GLBA)
YAML Configuration
24 lines ā¢ 873 characters
"Privacy policy developed and distributed"string
"Annual privacy notices to customers"string
"Opt-out procedures for information sharing"string
"Third-party sharing agreements reviewed"string
"Customer consent mechanisms implemented"string
"Privacy policy updates communicated"string
"Written information security program"string
"Information security officer designated"string
"Risk assessment conducted annually"string
"Access controls and authentication"string
"Data encryption at rest and in transit"string
"Vendor management program"string
"Policies prohibiting pretexting"string
"Customer authentication procedures"string
"Identity verification for account access"string
"Staff training on pretexting risks"string
"Incident response procedures"string
"Regular monitoring and testing"string
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State Privacy Laws
YAML Configuration
30 lines ā¢ 1152 characters
applicability:"Businesses with $25M+ revenue or 50K+ CA residents"string
"Privacy policy with required disclosures"string
"Do Not Sell My Personal Information link"string
"Consumer request handling procedures"string
"Data minimization and purpose limitation"string
"Opt-out preference signals recognition"string
"Risk assessment for sensitive data"string
applicability:"Any business with NY resident data"string
"Reasonable data security measures"string
"Data breach notification procedures"string
"Risk-based security program"string
"Vendor data protection requirements"string
"Employee training and awareness"string
"Incident response and recovery"string
applicability:"Businesses with 100K+ VA residents or 25K+ sold"string
"Privacy policy transparency"string
"Consumer rights implementation"string
"Data protection impact assessments"string
"Opt-out mechanisms for targeting"string
"Third-party contract requirements"string
"Appeals process for consumer requests"string
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Securities and Investment Compliance
SEC Regulations for Investment Advisors
YAML Configuration
40 lines ā¢ 1491 characters
"Form ADV filed and updated annually"string
"State vs. federal registration determination"string
"Minimum assets under management thresholds"string
"Multi-state registration coordination"string
"Investment advisor representative registrations"string
"Ongoing registration maintenance"string
"Best interest standard implementation"string
"Conflicts of interest identification and disclosure"string
"Fee disclosure and reasonableness"string
"Suitability determinations documented"string
"Regular portfolio reviews and rebalancing"string
"Client communication and reporting"string
"Qualified custodian arrangements"string
"Custody notification to clients"string
"Surprise custody examinations"string
"Client account statements reconciliation"string
"Standing letter of authorization controls"string
"Custody audit requirements"string
"Marketing materials review and approval"string
"Performance advertising compliance"string
"Testimonials and endorsements rules"string
"Third-party ratings disclosures"string
"Books and records for marketing materials"string
"Substantiation for marketing claims"string
"Client agreements and amendments"string
"Investment advisory contracts"string
"Performance calculation records"string
"Trade confirmations and statements"string
"Compliance policies and procedures"string
"Employee personal trading records"string
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FINRA Requirements for Broker-Dealers
YAML Configuration
32 lines ā¢ 1040 characters
"Minimum net capital calculations"string
"Daily net capital monitoring"string
"Early warning notifications"string
"Liquidity stress testing"string
"Regulatory capital reporting"string
"Capital adequacy planning"string
"Customer fund segregation"string
"Reserve formula calculations"string
"Customer account statements"string
"Free credit balance reporting"string
"Securities lending compliance"string
"Margin requirements monitoring"string
"Best execution policies and procedures"string
"Regular execution quality reviews"string
"Order routing disclosures"string
"Market center evaluations"string
"Execution quality reports"string
"Client best execution disclosures"string
"Written supervisory procedures"string
"Supervisory system implementation"string
"Branch office inspections"string
"Representative activity monitoring"string
"Customer complaint handling"string
"Regulatory examination preparation"string
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Payment and Banking Technology Compliance
Payment Card Industry (PCI) Standards
YAML Configuration
48 lines ā¢ 1690 characters
"Firewall configuration standards documented"string
"Network diagrams current and accurate"string
"Firewall rules reviewed at least every six months"string
"Unauthorized access monitoring"string
"Network segmentation implemented"string
"DMZ configuration for cardholder data"string
"Default passwords changed on all systems"string
"System hardening standards implemented"string
"Unnecessary services disabled"string
"Security parameters configured"string
"Encryption keys managed securely"string
"Vendor-supplied security patches applied"string
"Cardholder data retention policy"string
"Data deletion procedures implemented"string
"Primary account number (PAN) protection"string
"Encryption of stored data"string
"Key management procedures"string
"Database security controls"string
"Strong cryptography for data transmission"string
"Wireless network security"string
"Key management for transmission"string
"Network protocol security"string
"Messaging security implementation"string
"End-to-end encryption validation"string
"Anti-virus software on all systems"string
"Regular signature updates"string
"Periodic anti-virus scans"string
"Audit log generation and review"string
"Anti-virus software testing"string
"Malware detection and response"string
"Security patch management process"string
"Vulnerability management program"string
"Secure application development"string
"Change control procedures"string
"Web application security testing"string
"Code review processes"string
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Federal Reserve Payment System Regulations
YAML Configuration
32 lines ā¢ 1115 characters
"Error resolution procedures (10-day timeline)"string
"Consumer liability limitations"string
"Disclosure requirements for EFT services"string
"Preauthorized transfer rights"string
"ATM and point-of-sale disclosures"string
"Record retention requirements"string
"Funds availability policies disclosed"string
"Hold notification procedures"string
"Expedited funds availability"string
"Large deposit handling"string
"New account procedures"string
"Exception hold processes"string
"Wire transfer agreement requirements"string
"Security procedures implementation"string
"Error resolution and recovery"string
"Record retention (5 years)"string
"Same-day settlement compliance"string
"International wire transfer rules"string
"NACHA operating rules adherence"string
"Originator agreement requirements"string
"Risk management procedures"string
"Return and exception handling"string
"Consumer authorization requirements"string
"International ACH transaction rules"string
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Technology Security and Operational Compliance
FFIEC Technology Standards
YAML Configuration
32 lines ā¢ 1159 characters
"Board-approved information security program"string
"Risk assessment methodology documented"string
"Security awareness training program"string
"Incident response procedures"string
"Business continuity planning"string
"Vendor management oversight"string
"Business impact analysis conducted"string
"Recovery time objectives defined"string
"Recovery point objectives established"string
"Backup and recovery procedures tested"string
"Alternative processing arrangements"string
"Crisis management team structure"string
"Due diligence on service providers"string
"Contract risk management"string
"Ongoing monitoring procedures"string
"Performance measurement standards"string
"Business continuity coordination"string
"Audit rights and examination access"string
"Risk-based authentication systems"string
"Multi-factor authentication implementation"string
"Customer authentication procedures"string
"Session management controls"string
"Device identification and profiling"string
"Fraud monitoring and detection"string
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Cloud Computing Compliance
YAML Configuration
32 lines ā¢ 1114 characters
"Cloud service provider financial stability"string
"Regulatory compliance certifications"string
"Data location and sovereignty controls"string
"Security and privacy capabilities"string
"Business continuity and disaster recovery"string
"Audit rights and transparency"string
"Data ownership and control provisions"string
"Service level agreements defined"string
"Security and privacy obligations"string
"Audit and examination rights"string
"Data portability and deletion rights"string
"Regulatory compliance responsibilities"string
"Performance monitoring and reporting"string
"Security incident notification"string
"Compliance status monitoring"string
"Change management oversight"string
"Third-party audit reviews"string
"Contract compliance assessments"string
"Concentration risk assessment"string
"Data residency compliance"string
"Cross-border data transfer controls"string
"Vendor lock-in risk mitigation"string
"Business continuity coordination"string
"Exit strategy planning"string
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Implementation Compliance Checklist
Pre-Implementation Phase
YAML Configuration
32 lines ā¢ 1219 characters
"Applicable regulations identified"string
"Regulatory requirements mapped to solution"string
"Compliance gaps identified and addressed"string
"Regulatory approval requirements determined"string
"Compliance testing strategy developed"string
"Regulatory timeline constraints identified"string
"Vendor regulatory compliance certifications"string
"Vendor financial stability assessment"string
"Service organization control (SOC) reports reviewed"string
"Vendor security assessments completed"string
"Reference checks with similar institutions"string
"Vendor business continuity capabilities"string
"Regulatory compliance terms included"string
"Data protection and privacy clauses"string
"Audit rights and examination access"string
"Service level agreements defined"string
"Liability and indemnification provisions"string
"Termination and data return procedures"string
"Technology risk assessment completed"string
"Operational risk evaluation"string
"Compliance risk analysis"string
"Third-party risk assessment"string
"Business continuity risk review"string
"Risk mitigation strategies developed"string
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Implementation Phase
YAML Configuration
32 lines ā¢ 1108 characters
"Access controls implemented and tested"string
"Data encryption validated"string
"Network security controls configured"string
"Application security testing completed"string
"Vulnerability assessments performed"string
"Penetration testing conducted"string
"Data governance framework implemented"string
"Data quality controls established"string
"Data retention policies configured"string
"Data backup and recovery tested"string
"Data lineage documentation completed"string
"Privacy controls validated"string
"Comprehensive audit logging enabled"string
"Log retention policies implemented"string
"Log monitoring and alerting configured"string
"Audit trail integrity protected"string
"Compliance reporting capabilities tested"string
"Forensic capabilities validated"string
"Functional testing completed"string
"Security testing performed"string
"Performance testing conducted"string
"Compliance testing executed"string
"User acceptance testing completed"string
"Regulatory validation performed"string
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Post-Implementation Phase
YAML Configuration
32 lines ā¢ 1164 characters
"Compliance monitoring procedures implemented"string
"Regular compliance assessments scheduled"string
"Performance monitoring established"string
"Security monitoring configured"string
"Vendor management oversight"string
"Change management procedures"string
"Staff training programs completed"string
"Compliance training delivered"string
"Security awareness training conducted"string
"Training effectiveness measured"string
"Ongoing training schedule established"string
"Training records maintained"string
"Compliance documentation completed"string
"Regulatory reporting capabilities validated"string
"Management reporting established"string
"Board reporting procedures implemented"string
"Examination readiness procedures"string
"Document retention policies enforced"string
"Compliance metrics defined and tracked"string
"Regular compliance reviews scheduled"string
"Issue identification and remediation"string
"Best practices implementation"string
"Regulatory change monitoring"string
"Compliance program enhancement"string
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Audit and Examination Preparation
Regulatory Examination Readiness
YAML Configuration
32 lines ā¢ 1146 characters
"Current compliance policies and procedures"string
"Board minutes and committee reports"string
"Management information systems reports"string
"Audit reports and management responses"string
"Training records and certifications"string
"Vendor management documentation"string
"System functionality demonstrations prepared"string
"Compliance control demonstrations"string
"Reporting capability presentations"string
"Security control validations"string
"Data governance demonstrations"string
"Incident response capability shows"string
"Examination coordinator designated"string
"Staff roles and responsibilities defined"string
"Response protocols established"string
"Question routing procedures"string
"Escalation procedures defined"string
"Communication guidelines established"string
"Known issues documented and addressed"string
"Corrective action plans implemented"string
"Progress tracking and reporting"string
"Root cause analysis completed"string
"Process improvements implemented"string
"Validation testing performed"string
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Internal Audit Program
YAML Configuration
32 lines ā¢ 1103 characters
"Risk-based audit plan developed"string
"Audit scope and objectives defined"string
"Resource allocation and scheduling"string
"Audit procedures documented"string
"Independence and objectivity maintained"string
"Board and audit committee oversight"string
"Audit procedures followed consistently"string
"Evidence collection and documentation"string
"Testing and validation performed"string
"Findings documented and classified"string
"Root cause analysis conducted"string
"Management responses obtained"string
"Audit reports prepared timely"string
"Findings and recommendations documented"string
"Management action plans included"string
"Board and committee reporting"string
"Follow-up procedures established"string
"Trend analysis and reporting"string
"Audit quality control procedures"string
"Peer review processes"string
"Professional standards compliance"string
"Continuing education requirements"string
"Performance measurement and evaluation"string
"Improvement planning and implementation"string
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Compliance Technology Tools
Automated Compliance Monitoring
YAML Configuration
32 lines ā¢ 1124 characters
"Automated data collection and validation"string
"Report generation and submission"string
"Exception identification and handling"string
"Compliance calendar management"string
"Regulatory change monitoring"string
"Performance tracking and analytics"string
"Real-time transaction analysis"string
"Suspicious activity detection"string
"Case management workflow"string
"Regulatory reporting integration"string
"False positive reduction"string
"Performance tuning and optimization"string
"Automated risk scoring and rating"string
"Risk factor analysis and modeling"string
"Trend analysis and reporting"string
"Risk mitigation tracking"string
"Regulatory capital calculations"string
"Stress testing capabilities"string
"Audit planning and scheduling"string
"Issue tracking and remediation"string
"Document management and retention"string
"Workflow automation and notifications"string
"Performance measurement and reporting"string
"Regulatory examination preparation"string
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Conclusion
Compliance in FinTech requires meticulous attention to detail and systematic implementation of regulatory requirements. These checklists provide a comprehensive framework for ensuring regulatory compliance throughout the technology implementation lifecycle.
Key success factors include:
- Proactive Compliance Planning: Address regulatory requirements from project inception
- Comprehensive Documentation: Maintain detailed records of all compliance activities
- Ongoing Monitoring: Implement continuous compliance monitoring and assessment
- Regular Updates: Stay current with evolving regulatory requirements
- Expert Consultation: Engage regulatory experts and legal counsel as needed
Organizations that implement these compliance checklists systematically typically experience:
- 60-80% reduction in compliance-related delays
- 90%+ success rate in regulatory examinations
- Significant reduction in compliance violations
- Enhanced regulatory relationships and trust
Implementation Recommendations
- Start with Risk Assessment: Identify applicable regulations and compliance requirements early
- Implement Systematic Processes: Use checklists consistently across all projects
- Invest in Training: Ensure team members understand regulatory requirements
- Automate Where Possible: Use technology to automate compliance monitoring and reporting
- Maintain Current Documentation: Keep compliance documentation updated and readily accessible
Regulatory compliance is not optional in financial services. These checklists provide the framework for ensuring compliance while enabling innovation and technological advancement in the FinTech sector.