Regulatory compliance is an organization’s adherence to a strict set of laws, regulations, guidelines, and specifications related to an organization’s business. If they fail to comply with these terms, they face a wide spectrum of penalties, most of the time, hefty 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 followed.

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 Payment Card Industry Data Security (PCI DSS), and the Sarbanes-Oxley Act (SOX). Continue below to learn a little about each law.

1. Dodd-Frank Act

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-run financial industry. It was enacted in 2010 to create financial oversight procedures to limit risk through transparency and accountability compliance.

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 cyber-attacks, hacking, and identity theft after the rise of the Internet, this is much-needed legislation for our medical industries, both public and private.

3. Federal Law on Information Security Management (FISMA)

This law was enacted as part of the Electronic Government Act of 2002. It outlines the comprehensive framework for protecting 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 4 major credit card companies, MasterCard, Discover, Visa, and American Express. It is a set of guidelines and procedures intended to increase the security of credit cards. 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 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 monetary fraud within organizations that make intensive use of computers. It also improves the accuracy of corporate disclosures.