Regulatory compliance is an organization’s compliance with a strict set of laws, rules, guidelines, and specifications related to an organization’s business. If they do not comply with these terms, they face a wide range of penalties, most of the time heavy federal fines and civil lawsuits. As the need for regulatory compliance continues to grow, new positions have been created just to oversee this area of ​​business. For example, many corporations are now appointing Directors and Compliance Officers within their organization to ensure that all legalities and guidelines are adhered to.

Regulatory Compliance in the US

Five of the most common regulatory compliance laws in the United States include the Dodd-Frank Act, the Health Insurance Portability and Accountability Act (HIPAA), the Federal Information Security Management Act (FISMA), the Standard Payment Card Industry Data Security (PCI DSS), and the Sarbanes-Oxley Act (SOX). Continue below to learn something about each act.

1. Dodd-Frank Law

Also known as the Dodd-Frank Wall Street Reform and Consumer Protection Act, this legislation is important because it is a federal law that regulates the government-owned financial industry. It was enacted in 2010 to create financial supervision procedures in order to limit risk through the application of transparency and accountability.

2. Health Insurance Portability and Accountability Act (HIPAA)

Enacted in 1996, the Health Insurance Portability and Accountability Act (HIPAA) represents regulatory compliance for data security and privacy of medical records. With so many cyberattacks, hacking, and identity theft taking place after the internet boom, this is much-needed legislation for our medical industries, both private and public.

3. Federal Law on Information Security Management (FISMA)

This law became law as part of the Electronic Government Law of 2002. It describes the comprehensive structure to protect all government information, operations and assets. Whether the threat is natural or man-made, this legislation has an agenda to ensure that all government information is protected.

4. Payment Card Industry Data Security Standard (PCI DSS)

PCI DSS legislation was enacted in 2004 by the top 4 credit card companies, MasterCard, Discover, Visa, and American Express. It is a set of guidelines and procedures designed to increase credit card security. This includes both credit and cash transactions. Also with the threat of identity theft and other types of theft, this act plays an important role in protecting us against crime.

5. Sarbanes-Oxley Act (SOX)

This law was passed by the United States Congress in 2002 and is currently administered by the United States Securities and Exchange Commission (SEC). It was created with the purpose of protecting both shareholders and the general public from accounting errors and money fraud within organizations that use computers a lot. It also improves the accuracy of corporate disclosures.