5 acts that require compliance with the regulatory requirements in the USA
Regulatory compliance is an organization’s adherence to a strict set of laws, rules, guidelines, and specifications that relate to the organization’s business. If they fail to meet these conditions, they face a wide range of penalties, most often 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 the business. For example, many corporations now appoint chief and compliance officers within their organization to ensure that all legal requirements and guidelines are met.
US regulatory compliance
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 Industry Data Security Standard of Payment Cards (PCI DSS), and the Sarbanes-Oxley Act (SOX). Continue below to learn a little about each act.
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 financial industry in the hands of the government. It was adopted in 2010 to establish financial supervision procedures to limit risk by enforcing transparency and accountability.
2. Health Insurance Portability and Accountability Act (HIPAA)
Enacted in 1996, the Health Insurance Portability and Accountability Act (HIPAA) represents the regulatory requirements for data security and privacy of medical records. With so many cyberattacks, hacking and identity theft since the internet boom, this is much needed legislation for our medical industries, both private and public.
3. Federal Information Security Management Act (FISMA)
This act was signed as part of the Electronic Government Act of 2002. It outlines the overall framework for protecting all government information, operations and assets. Whether the threat is man-made or natural, this legislation has a program to ensure that all government information is protected.
4. Payment Card Industry Data Security Standard (PCI DSS)
The PCI DSS legislation was passed in 2004 by the 4 largest credit card companies, MasterCard, Discover, Visa and American Express. It is a set of guidelines and procedures that are intended 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 a major role in protecting us from crime.
5. Sarbanes-Oxley Act (SOX)
This act was passed by the United States Congress in 2002 and is currently administered by the US Securities and Exchange Commission (SEC). It was created to protect both shareholders and the general public from accounting errors and financial fraud in computer-intensive organizations. It also increases the accuracy of corporate disclosures.
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