Does your website or company accept payments online or store financial records digitally? If you answered “yes,” then you need to be compliant with industry regulations.
In simple terms, compliance is the act of meeting established industry or government guidelines. These guidelines are in place to protect you and your customers’ data. As technology changes, these compliance regulations evolve, and it can be difficult for some businesses to keep up with the changes.
Here are two compliance regulations businesses need to be aware of regarding financial information:
With more and more financial transactions conducted online than ever before, you have to be vigilant in protecting you and your customers’ payment information. All it takes is one data breach for your customers to lose trust in your business. Enter the Payment Card Industry Data Security Standard, or PCI DSS. These regulations and requirements are designed to ensure that all companies that accept, store, process or transmit cardholder data during a credit card transaction maintain a secure environment.
There are different compliance levels, determined by how many online credit card transactions your business performs within a year. Each major credit card company has its own specific requirements, such as annual questionnaires and quarterly network scans by a third-party vendor.
In the early 2000s, the U.S. government passed legislation to crack down on inaccurate financial information following scandals involving high-profile corporations such as Enron and WorldCom. This legislation became known as the Sarbanes-Oxley Act of 2002, or SOX. The act protects shareholders and the general public by improving the accuracy of corporate financial disclosures.
The financial and IT departments of all public companies are required to follow SOX regulations. The act outlines which records need to be stored and how long you need to maintain a secure backup of your financial data.
What Happens if You’re Not in Compliance?
For companies that are not in compliance with PCI, SOX or other regulations, there can be harsh penalties. For example, if you’re found in violation of the SOX requirements, you could get kicked off your exchange listing and face multimillion-dollar fines.
How We Can Help
If your business takes any kind of online payment, you need to be in compliance. We perform audits and assessments to determine whether your company meets industry regulations. Most importantly, we can create policies, controls and procedures to ensure your company prevents future issues and meets compliance every time.
Don’t navigate complicated compliance and industry regulations alone. Contact us today to get started.