Cybersecurity Regulations for the Financial Industry

The financial services industry is one of the most heavily regulated sectors globally, playing a crucial role in the stability of the global economy. With the rise of cyber threats and data breaches, it has become more important than ever for organizations in this industry to implement robust cybersecurity measures to protect consumers, prevent financial crimes, and ensure the integrity of financial systems.

In this article, we’ll explore the cybersecurity regulations that apply to the financial industry in 2025. We’ll also discuss best practices to ensure compliance and safeguard client confidentiality.

Key Cybersecurity Regulations for Financial Services in 2025

Several cybersecurity regulations and compliance frameworks apply to companies in the financial sector. These regulations vary in their requirements, but they all aim to secure customer data and ensure the safety of financial transactions.

Payment Card Industry Data Security Standards (PCI DSS)

For: Any business that accepts card payments

The Payment Card Industry Data Security Standards (PCI DSS) were created by major payment card brands like Visa, MasterCard, and American Express to safeguard customer data and prevent fraud. In 2025, PCI DSS compliance remains essential for businesses handling, storing, or transmitting card information.

The main compliance requirements of PCI DSS include:

1. Build and maintain a secure network.

2. Protect cardholder data.

3. Maintain vulnerability management.

4. Implement strong access control measures.

5. Regularly monitor and test networks.

6. Maintain an information security policy.

Sarbanes-Oxley Act (SOX)

For: Publicly-traded companies

The Sarbanes-Oxley Act (SOX), enacted in 2002, requires public companies to maintain accurate financial records and disclose material changes. In 2025, SOX continues to include provisions for cybersecurity, mandating that companies implement adequate controls to protect against cyberthreats. This includes controls for sensitive data access, network security, and incident response procedures.

Gramm-Leach-Bliley Act (GLBA)

For: Financial services companies

The Gramm-Leach-Bliley Act (GLBA) requires financial institutions to protect the confidentiality of customer information and to provide privacy notices explaining how personal data is used. In 2025, financial institutions must implement comprehensive information security programs that include physical, technical, and administrative safeguards to protect against unauthorized access to customer data.

Bank Secrecy Act (BSA)

For: Financial institutions

Under the Bank Secrecy Act (BSA), financial institutions must keep records of transactions and report suspicious activities to the Financial Crimes Enforcement Network (FinCEN). The BSA is vital in combating money laundering and terrorist financing, and it mandates that institutions have compliance programs that include:

• Internal controls

• A designated compliance officer

• Training programs

• Independent compliance testing

• Customer due diligence

General Data Protection Regulation (GDPR)

For: Companies processing data of EU citizens

The General Data Protection Regulation (GDPR) was implemented to protect the personal data of EU citizens and residents. In 2025, GDPR compliance is critical for companies that process EU personal data, even if the company is based outside the EU. Companies must ensure data is secure, encrypted, and only accessible by authorized personnel. They must also appoint a Data Protection Officer to ensure compliance.

National Institute of Standards and Technology Cybersecurity Framework (NIST CSF)

For: Any company looking for a cybersecurity framework

The NIST Cybersecurity Framework (CSF) offers a set of best practices for managing cybersecurity risk. It is not mandatory but is increasingly used by organizations to improve cybersecurity posture and by regulators to assess financial institutions’ risks. NIST CSF helps organizations identify their cybersecurity risks and implement the appropriate controls.

ISO/IEC 27001

ISO/IEC 27001 is an international standard for an information security management system (ISMS). While not specific to financial services, this standard is essential for any company that handles personal data. It outlines how to manage and mitigate cybersecurity risks, with a focus on securing personal data through encryption and secure storage.

Best Practices for Ensuring Compliance in 2025

To comply with the cybersecurity regulations outlined above, financial institutions must adopt several best practices:

1. Conduct regular risk assessments to identify potential vulnerabilities.

2. Implement strong security controls to mitigate identified risks.

3. Monitor compliance with internal policies and procedures.

4. Stay updated on regulatory changes and adjust policies accordingly.

5. Respond quickly to incidents to minimize damage.

Additionally, financial institutions should invest in cyber insurance to cover the costs associated with data breaches or other cybersecurity incidents. Many cyber insurers now require Multi-Factor Authentication (MFA) as a baseline security measure.

By adhering to cybersecurity regulations and implementing these best practices, financial institutions can protect customer data and ensure operational continuity in the face of cyber threats.

Enlisting Expert Help for Cybersecurity Compliance

Cybersecurity compliance can be complex and time-consuming. Every organization has unique risks and needs, making a one-size-fits-all solution impractical. For this reason, financial institutions should consider working with compliance experts or managed IT services providers to ensure they meet all regulatory requirements.

If you need assistance with cybersecurity compliance or implementing robust security controls, contact Charles IT today. Our team of experts can guide you through the process and ensure your business is secure and compliant with the latest regulations.

* This blog was updated in March 2025 for accuracy.