FinTech Magazine August 2024 | Page 78

DIGITAL BANKING
REGULATORY COMPLIANCE : THE KEY TERMS
GDPR ( General Data Protection Regulation ):
• Protects personal data and privacy of individuals within the EU .
• Requires consent for data processing and grants individuals rights over their data .
• Imposes strict data protection and breach notification requirements .
PSD2 ( Payment Services Directive 2 ):
• Regulates electronic payment services in the EU .
• Promotes competition and innovation by mandating open banking .
• Enhances security for online payments and account access .
CCPA ( California Consumer Privacy Act ):
• Grants California residents rights over their personal data .
• Requires businesses to disclose data collection and sharing practices .
• Allows consumers to opt out of data selling .
KYC / AML ( Know Your Customer / Anti-Money Laundering ):
• Requires financial institutions to verify customer identities .
• Aims to prevent money laundering , fraud and terrorist financing .
• Involves continuous monitoring and reporting of suspicious activities .
FAPI ( Financial-grade API ):
• Sets security standards for financial APIs .
• Ensures secure data sharing between financial institutions and third-party providers .
FDX 5.3 ( Financial Data Exchange ):
• Establishes standards for secure data sharing in the financial industry .
• Aims to enhance interoperability and security in financial data exchanges .
78 August 2024