15 Essential Cybersecurity Regulations Every Financial Services Firm Must Know in 2025

cybersecurity regulations for financial services 2025

Cyber threats targeting the financial sector are more sophisticated than ever, making regulatory compliance a top priority. For banks, credit unions, investment firms, and fintechs, understanding and adhering to the latest cybersecurity regulations for financial services 2025 is critical, not just for compliance, but for customer trust and business continuity.

This guide explores the 15 most impactful cybersecurity regulations for financial services in 2025 you need to know, and what steps you can take to stay compliant in a fast changing landscape.

1. Gramm-Leach-Bliley Act (GLBA)

Requires financial institutions to explain their information sharing practices and safeguard sensitive customer data. Updated for 2025 to include stricter controls on third party vendors and incident response.

2. Payment Card Industry Data Security Standard (PCI DSS) 4.0

Applies to any organization handling cardholder data. The latest PCI DSS 4.0 standard increases requirements around authentication, encryption, and proactive monitoring.

3. Sarbanes-Oxley Act (SOX)

Mandates strict controls on financial reporting and IT systems. Firms must ensure robust cybersecurity practices to prevent data tampering and unauthorized access.

4. New York Department of Financial Services (NYDFS) Cybersecurity Regulation

Applies to financial services companies operating in New York. Updated 2025 guidelines expand requirements for risk assessment, continuous monitoring, and rapid incident notification.

5. Federal Financial Institutions Examination Council (FFIEC) Guidelines

Establishes baseline cybersecurity standards for banks and credit unions. Recent updates emphasize threat intelligence sharing and third party risk management.

6. General Data Protection Regulation (GDPR)

While European, GDPR directly impacts global financial firms serving EU citizens. Key elements: data minimization, breach notification, and data subject rights.

7. California Consumer Privacy Act (CCPA) & CPRA

California’s CCPA/CPRA gives consumers rights over their data and requires financial organizations to maintain strong protections and clear disclosures.

8. Dodd-Frank Act

Enforces transparency and accountability in financial markets, with sections mandating cybersecurity risk controls for critical systems and third party vendors.

9. Securities and Exchange Commission (SEC) Cybersecurity Rules

The SEC continues to tighten reporting and governance standards for public companies and investment advisors, focusing on cyber incident disclosure and risk oversight.

10. Financial Industry Regulatory Authority (FINRA) Cybersecurity Requirements

FINRA’s evolving rules require member firms to adopt risk based controls, regular security testing, and employee training programs.

11. Office of the Comptroller of the Currency (OCC) Cybersecurity Guidelines

Banks regulated by the OCC must comply with standards for data security, operational resilience, and vendor oversight, now updated for new digital risks in 2025.

12. Bank Secrecy Act (BSA) / Anti-Money Laundering (AML) Requirements

These laws require robust identity verification, monitoring, and suspicious activity reporting, all reliant on secure IT infrastructure.

13. Basel III & IV

International standards aimed at strengthening bank capital requirements also require sound IT governance and cyber risk controls.

14. National Institute of Standards and Technology (NIST) Cybersecurity Framework

Widely adopted, NIST’s framework guides financial institutions in identifying, protecting, detecting, responding, and recovering from cyber threats.

15. State-Specific Cybersecurity Regulations

States like Massachusetts, Texas, and Illinois have their own financial cybersecurity laws. Financial organizations must ensure compliance with all applicable local regulations.

How to Stay Compliant in 2025

Continuous Monitoring: Invest in tools and processes for real time risk detection and mitigation.
Regular Training: Keep staff aware of current threats and regulatory requirements.
Third Party Risk Management: Vet vendors for compliance with your cybersecurity standards.
Incident Response Planning: Develop and test plans to meet breach notification deadlines.
Documentation: Keep comprehensive records to demonstrate compliance during audits.

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Source

StrongDM: Cybersecurity Regulations in the Financial Industry