Even though the heyday of the Dodd-Frank Act (DFA) is well behind us, and the Trump administration continues to espouse a deregulatory philosophy, financial institutions mustn’t stop prioritizing regulatory compliance. In fact, along with routine regulatory requirements, there are at least five noteworthy compliance issues on the 2020 horizon that both regulators and bankers agree will require significant attention this year.
1. Data Privacy and Uncertainty
In May 2017, The Economist declared that data had replaced oil as the world’s most valuable resource. Two ensuing events further emphasized this point: the September 2017 Equifax data breach exposing 147 million people and the Cambridge Analytica data scandal, which broke in March 2018 revealing that as many as 87 million Facebook profiles had been misappropriated.
Not surprisingly, the first data privacy laws—with any real teeth— became reality soon thereafter.
In May 2018, the General Data Protection Regulation (GDPR), which grants consumers in the European Union significant rights over their personal data, went into effect. The real kicker: It was not limited to European companies. U.S. firms who do business in the EU or have EU customers are subject to the GDPR.
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