Fintech Compliance

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Fintech Compliance Checklist for 2024 (Essential Guide)

Apr 24, 2024

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InnReg

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21 min read

Contents

Are you a fintech executive or compliance lead? This Fintech Compliance Checklist provides an essential and actionable framework for any fintech to strive to become and stay compliant with regulations.

As governments around the world are raising the regulatory pressure, compliance becomes one of the main challenges for fintech startups. In this article, you will also find insights and a practical perspective on the challenges you’ll likely face based on our extensive experience in designing and implementing compliance programs for fintechs globally.

As a fintech executive, you don't need to be a regulatory compliance expert, but you must have a good working knowledge of the main fintech compliance topics.

If you are a founder, our practical fintech compliance checklist provides a thorough understanding of expectations from your Chief Compliance Officer or your outsourced compliance provider.

And if you are a compliance expert, save time by using this checklist to get started on designing your own best-in-class compliance program.

Subject-matter experts with decades of experience wrote this analysis, not freelance copywriters, third-party agencies, or ChatGPT. Our compliance advisors work with multiple fintech startups that embed AI into their products and operations.

Fintech Compliance Checklist
Fintech Compliance Checklist

4 Pillars for a Robust Fintech Compliance Program

Through our extensive experience as an outsourced compliance provider, we have identified the following four topics as the pillars of a successful compliance program:

  1. Regulatory Compliance

  2. Operational Compliance

  3. Technology Compliance

  4. Reporting and Documentation Compliance


Let's dive into each one of those pillars that will help your fintech's compliance program:

Fintech Compliance Checklist

1. Regulatory Compliance

Every fintech compliance checklist starts with regulatory compliance. Regulatory compliance is crucial for fintechs, their growth, and overall success in the competitive financial services market. As governments around the world are raising the regulatory pressure, compliance becomes one of the main challenges for fintech startups.

Compliance with regulatory standards helps protect your consumers' interests, as well as your credibility.

By adhering to applicable regulations, you demonstrate your commitment to ethical practices, responsible financial behavior, and the protection of customer data.

Commitment to compliance helps build a positive reputation, attract customers, and establish long-term relationships. Failure to comply can result in significant penalties, fines, legal action, or even the suspension of operations.

While specific requirements may vary depending on the jurisdiction and the nature of the fintech's operations, here are some common steps to help you establish your regulatory compliance program:

  • 1.1. Licensing and Registration

  • 1.2. Anti-Money Laundering (AML) and Know Your Customer (KYC) Policies

  • 1.3. Data Privacy and Security

  • 1.4. Consumer Protection

1.1. Licensing and Registration

The need to obtain a license depends on several factors, including the nature of the fintech's activities, its jurisdiction, and the regulatory framework governing financial services in that jurisdiction.

However, not every fintech activity requires a license. Some fintechs may operate under regulatory exemptions or fall outside the scope of licensing requirements. Before starting your business activity, consult with licensing experts on whether you need a license.

Earlier this year, the Dutch Central Bank (DNB) fined the global crypto exchange Coinbase €3.3 million ($3.6 million) for operating in the country without a registration.

If you are not required, ask compliance experts whether you can benefit from having a license.

If you do need a license, the following steps will help you navigate through licensing compliance:


Regulatory Assessment

  • Conduct thorough research to understand the regulatory framework applicable to your fintech’s business activity in the target jurisdiction.

  • Identify the relevant laws, regulations, and guidelines specific to your fintech's niche.


Licenses & Registrations

  • Identify the specific licenses or registrations required for the fintech's planned operations.

  • Ensure all licenses and registrations are obtained and are up to date.


License Application

  • Prepare a comprehensive license application with all the required information, documentation, and supporting materials.

  • You will be required to provide details about your fintech's business activities, operational processes, risk management procedures, compliance policies, financial statements, background checks of key individuals, and any other information specific to the licensing requirements.


Ongoing Compliance and Reporting

  • Once licensed, your fintech must establish and maintain ongoing compliance with regulatory requirements.

  • Implement and adhere to compliance policies and procedures, reporting obligations, record-keeping requirements, and any ongoing regulatory filings.


Regulatory Monitoring and Updates

  • Stay updated on regulatory changes and requirements that may impact the fintech's licensed activities. 


In the US, money transmitters operating without required state licenses are subject to federal criminal exposure for knowingly operating an unlicensed money transmission business. 

That said, no matter what services your fintech provides, if it is subject to licensing and registration requirements, you must comply with them to avoid risking heavy fines.

Being part of a regulatory sandbox could also be critical in providing clarity and direction to navigate the complexities of financial regulation, ensuring that your products and services do not compromise market integrity and consumer security.

Are you interested in gaining a deeper knowledge on regulations and licensing? Dive into insights by our in-house experts:

1.2. Anti-Money Laundering (AML) and Know Your Customer (KYC) Policies

In 2022, there was a significant increase of over 50% in global penalties for failing to prevent money laundering and other financial crimes.

In the same year, financial institutions faced fines exceeding $8 billion for violations of anti-money laundering (AML) measures, resulting in a cumulative sum of AML fines since the global financial crisis (2007-2008) reaching approximately $56.1 billion. The price of getting things wrong in the financial services industry is massive.

Money laundering represents annual losses worth up to $2 trillion globally, which is why AML compliance is a priority for regulators.

Protecting customers through a fully scalable and comprehensive AML program is a key step on the path to compliance for any fintech company.

We have compiled an essential list of compliance investments to help you meet your AML & KYC compliance obligations.


KYC Procedures

  • Develop and implement robust KYC procedures to verify customer identities, assess risks, and obtain necessary information within regulatory guidelines.


Customer Due Diligence

  • Conduct thorough due diligence on customers, including verifying identities, assessing business relationships, and monitoring transactions for suspicious activities. 


Transaction Monitoring

  • Implement a comprehensive system to monitor customer transactions, detect unusual patterns or high-risk activities, and report suspicious transactions to relevant authorities. 


AML Training

  • Provide regular training to employees on AML policies, procedures, and red flags for identifying suspicious transactions or customers, promoting a culture of compliance. 


Compliance Reporting

  • Establish a framework for timely and accurate reporting of suspicious activities, maintaining records, and cooperating with regulatory agencies as required.


To meet compliance obligations and avoid expensive fines, you must implement robust KYC procedures, conduct thorough customer due diligence, and establish transaction monitoring systems.

In 2022, the global fintech Wise was fined $360,000 by Abu Dhabi’s regulator for breaching AML requirements by failing to establish and maintain adequate AML systems and controls.

Regular AML employee training and establishing a framework for compliance reporting are also crucial.

For practical insight into AML compliance, you can browse these popular articles:

1.3. Data Privacy and Security

In 2023, every 39 seconds, a threat actor targets a business’s cybersecurity infrastructure. With an estimated 300,000 new malware created daily, 2023 is poised to dwarf 2.8 billion malware attacks launched in the first half of 2022 alone.

Every subsequent month beats the previous one by the number of ransomware attacks. March 2023 was the most prolific month recorded by cybersecurity analysts in recent years, an increase of 91% from February 2023. May 2023 topped the records shortly thereafter, and this threat is only growing across multiple industries and countries.

Nobody wants to see their fintech name in the news or quietly pay hackers under the radar to be released from a hostage situation.

Here are the key steps a fintech can take to support compliance with data privacy and security requirements:


Privacy Policy


Data Encryption

  • Implement strong encryption methods for sensitive data at rest and in transit, adhering to industry standards and regulations.


Access Controls

  • Establish robust access controls, including role-based permissions and authentication mechanisms, to protect customer data.


Incident Response Plan

  • Develop a detailed plan for addressing data breaches or security incidents, covering assessment, containment, notification, and cooperation with regulators.


Employee Training

  • Conduct regular training on data privacy and security best practices, raising awareness of risks such as phishing and social engineering.


Note: the global data privacy and security landscape is evolving rapidly as governments and regulatory bodies worldwide seek to address the increasing importance of protecting personal data and mitigating security risks.

If your fintech operates globally, you should familiarize yourself with the applicable regional regulations, as most of them are far-reaching and could lead to steep fines in case of breaches.

For more insights on data privacy, you can review these topics:

1.4. Consumer Protection

In today's rapidly evolving fintech industry, adapting to consumer protection regulations is paramount, especially given a growing number of consumer complaints to CFPB.

Consumer complaints related to financial services have been on the rise. In 2011, in the United States alone, the Consumer Financial Protection Bureau received over 542,300 consumer complaints. By 2022, this number increased to 1,287,300 complaints highlighting the need for a robust consumer protection culture.


CFPB Consumer Complaints Received By Financial Product Or Service Type (2018-2022)


With a sharply increasing volume of complaints, however, there is a capacity bottleneck at CFPB. As a result, the number of referrals to the regulator decreased from 14% to 5%.

Consumer Complaints Received and Referred to Regulator by CFPB (2018-2022) (1)


Fintechs heavily rely on building trust with their customers. Compliance with consumer protection regulations helps foster this trust by demonstrating a commitment to protecting consumers' interests.

In the following checklist, we have compiled several best practices for your fintech to effectively comply with the regulatory requirements in the field of consumer protection:


Transparent Disclosures

  • Ensure clear and transparent disclosures of terms, fees, and risks associated with financial products and services to customers.


Complaint Handling

  • Establish an effective process for receiving, addressing, and resolving customer complaints and disputes promptly and fairly.


Fair Lending Practices

  • Adhere to fair lending practices by prohibiting discriminatory practices and ensuring equal access to credit and financial services.


Advertising and Marketing


Customer Communication

  • Maintain open and effective communication channels with customers, providing accessible and accurate information about their accounts, transactions, and rights.


By prioritizing consumer protection, your fintech can build strong customer relationships and position itself as a trusted and customer-centric player in the fintech ecosystem.

For further insights on consumer protection, please visit the following articles:

2. Operational Compliance

While building your regulatory compliance program, you’ll have already laid the foundation of your fintech’s operational compliance. One cannot exist without the other.

While specific requirements may vary depending on the jurisdiction and nature of your fintech's operations, here are some common steps to help establish your regulatory compliance program:

  • 2.1. Governance and Risk Management

  • 2.2. Compliance Training and Awareness

  • 2.3. Compliance Monitoring and Auditing

  • 2.4. Vendor Management


We have compiled the following fintech compliance checklists to help you implement and meet your primary operational compliance obligations.

Need help with fintech compliance?

Fill out the form below and our experts will get back to you.

2.1. Governance and Risk Management

A multi-year survey of 40,000 participants across multiple industries revealed that 84% cite leader behavior as the single most important factor influencing accountability in their organizations. As to holding others accountable, 82% of survey participants say they either try but fail or avoid it altogether.

Not every organization has the luxury of a Chief Compliance Officer to reinforce accountability from the top. According to Deloitte, smaller fintechs, with less than $5 billion in annual revenue, are less likely to have a designated CCO (64% for small fintechs compared to 84% for larger firms), and the CCO is less likely to be a standalone position (51% vs. 70%).

Clear lines of responsibility, compliance policies, and procedures are critical for effective governance and oversight. In KPMG’s CCO Survey, 21% of organizations report that they don’t have a compliance risk assessment process that considers compliance risks across multiple jurisdictions, including products and services.

Here's a fintech compliance checklist of governance and risk management best practices for fintechs:


Governance & Oversight 

  • Establish clear lines of responsibility and accountability for compliance within the organization. Define roles and responsibilities, establish compliance policies and procedures, and ensure senior management and board oversight.


Chief Compliance Officer 

  • Hiring a Chief Compliance Officer (CCO) is essential for fintech startups due to the highly regulated nature of the financial services industry. 

  • Depending on the size of your fintech, you may prefer to first engage an outsourced CCO and later transition to a full-time hire.


Ongoing Risk Assessments 

  • Identify and assess compliance risks specific to the organization's operations, industry, and regulatory environment. Evaluate the potential impact and likelihood of compliance breaches and prioritize risks for mitigation.


Building a compliant and resilient fintech ecosystem requires senior management support and accountability, a CCO embedded into the senior management team, and ongoing risk assessments.

If you need to know more about these topics, please visit the following articles:

2.2. Compliance Training and Awareness

Continuous training specifics may vary based on the fintech's operations, size, and regulatory environment. They typically cover topics such as fraud prevention, AML/KYC, data privacy, cybersecurity, anti-bribery and corruption, conflicts of interest, industry best practices, and case studies.

While one-time training is minimally effective, according to Verizon Data Breach Investigations Report 2023, companies with regular security awareness training have 70% fewer security incidents.

Educating employees on regulatory requirements, internal policies, and best practices is essential. Testing their knowledge ensures understanding and ongoing compliance.

Record keeping of training, attendance, and results is evidence of due diligence. Maintaining comprehensive records is crucial for regulatory audits and investigations. Inadequate records can lead to penalties or reputational damage.

Here is a checklist of best practices for your compliance training program:

Employee Training

  • Educate your employees on the applicable regulatory requirements, internal policies, guidelines and best practices related to compliance. Make sure to test their knowledge. 


Record Keeping 

  • Keep records of the provided training, attendance, and results.


Periodic & Ad-hoc Training Sessions 

  • Provide periodic training depending on the importance of the topic. Also, make sure to provide ad-hoc training when regulatory changes occur. 


Providing both periodic and ad-hoc training is necessary. Ongoing sessions address important topics, while ad-hoc training addresses specific regulatory changes. By taking these actions, fintech leaders can foster a compliant culture, mitigate risks, and maintain regulatory adherence.

For further insight, check the following detailed guide that we have prepared:

2.3. Compliance Monitoring and Auditing

More than 50% of all occupational frauds result from an internal control deficiency, according to the Association of Certified Fraud Examiners.

Internal controls are policies, procedures, and processes designed to safeguard assets, ensure operational efficiency, and promote compliance (e.g., segregation of duties). Tailoring controls to your fintech's operations and regularly monitoring and adapting them are crucial.

Association of Certified Fraud Examiners reported that these four anti-fraud controls were associated with a 50% or greater reduction in both fraud losses and fraud duration: 1) a robust Code of Conduct; 2) a strong internal audit department; 3) management certifications of financial statements; and 4) management and reviews of internal controls, processes, accounts, and transactions.

Here is a checklist of best practices for your compliance monitoring and auditing: 


Internal Control 

  • Tailor internal controls to your fintech's specific operations, risk profile, and regulatory requirements. Regular monitoring, evaluation, and adaptation of internal controls are crucial to address changing risks and evolving business needs.


Periodic Internal Audits 

  • Conduct an internal systematic and independent assessment of your fintech’s processes, controls, and compliance with applicable laws, regulations, and industry standards. 


Remediation

  • Depending on your findings, correct deficiencies and implement remedial actions as necessary.


By taking these actions, you can strengthen compliance, enhance operational efficiency, and mitigate risks. Tailored controls, internal audits, and remediation efforts contribute to robust and resilient fintech operations and growth support.

Use insights from the following articles to establish or benchmark your internal controls:

2.4. Vendor Management

According to a recent Deloitte survey, third-party failures can cost companies as much as US$1 billion per incident.

On average, approximately 9% of contracts experience a significant claim or dispute. Formal disputes are clearly a very small proportion of this – data suggests less than 0.1%. The Banking / Insurance / Finance industry experience an average of 7.5% contract compliance disputes. (IACCM study on the Most Negotiated Terms and Conditions)

To avoid third-party failures and subsequent legal disputes, establish a robust vendor management program.

A solid vendor management program for a fintech effectively manages relationships with third-party vendors to ensure they meet the fintech's security, compliance, and operational requirements, such as:


Due Diligence

  • Establish criteria for selecting vendors based on their capabilities, reputation, financial stability, and compliance with regulatory requirements.

  • Conduct due diligence to assess vendors' suitability, including their compliance controls, information security practices, and data protection measures.


Vendor Contracting

  • Establish clear contractual agreements with vendors that outline the scope of services, performance expectations, data protection provisions, confidentiality clauses, indemnification, liability, termination clauses, and any regulatory compliance requirements.

  • Contracts should clearly define the roles and responsibilities of both parties.


Risk Assessment & Categorization

  • Conduct a risk assessment of each vendor to determine their inherent risk level.

  • Categorize vendors based on their risk level to prioritize ongoing monitoring efforts.


Ongoing Vendor Monitoring

  • Continuously monitor vendor performance, compliance, and adherence to contractual obligations.


Proactive due diligence, clear contracts, risk assessments, and ongoing monitoring are vital in 
achieving compliance in the dynamic fintech landscape.

Would you like to learn the latest insights on vendor management? Check out the following article:

3. Technology Compliance

Cybercrime costs are projected to reach $10.5 trillion annually by 2025. According to Surfshark, the United States experiences the most data breaches of any country. In 2021, 212.4 million users were affected (compared to 174.4 million in 2020).

This proliferation of cybercrimes means your fintech technology must be solidly compliant and robustly secure. Here are the obligations for technology compliance:

  • 3.1 Information Systems Security

  • 3.2 IT Governance

  • 3.3 Electronic Transactions and Payment Processing

3.1 Information Systems Security

The 2022 Thales Data Threat Report found that almost half (45%) of US companies suffered a data breach in the past year. However, the report doesn’t account for undetected breaches and companies unwilling to disclose a breach. So, the occurrence of breaches may be higher.

Implementing secure systems and network infrastructure, such as firewalls and encryption, is essential. Regularly patching software is crucial, as 60% of breaches involve unpatched vulnerabilities.

Here’s a comprehensive breakdown of your fintech’s information security compliance obligations:

Secure systems and network infrastructure

  • Establish a secure network architecture by implementing firewalls, intrusion detection/prevention systems, and secure remote access controls.

  • Implement strong encryption protocols for data transmission and storage.

  • Regularly patch and update software to address vulnerabilities and apply security patches promptly.


Regular assessments and updates to security measures

  • Conduct periodic risk assessments to identify vulnerabilities and potential security gaps. 


Penetration testing and vulnerability assessments

  • Perform regular penetration tests to identify weaknesses and vulnerabilities in your systems.

  • Conduct vulnerability assessments using scanning tools to detect and remediate vulnerabilities in software, applications, and infrastructure. Ensure timely remediation.


What are the proactive measures to reduce vulnerability and harden security? Stay updated with emerging threats, as cybercriminals continuously evolve their tactics. Conduct proactive penetration testing and vulnerability assessments. Engage ethical hackers to perform tests exposing weaknesses and subscribe to scanning tools to detect vulnerabilities.

Need to implement regulatory FTC guidance for your mobile fintech? Read more:

3.2 IT Governance

Effective IT governance is crucial for organizations today. With increasing investment in IT governance, there is a recognized need to mitigate risks and improve decision-making.

Establishing robust IT policies and procedures promotes secure practices and compliance. Addressing areas such as data security and technology use ensures adherence to best practices. Last but certainly not least, developing incident response procedures enables effective resolution of security breaches and IT incidents.

Below, we have compiled a list of your fintech’s IT governance compliance obligations: 


Regulatory Assessment

  • Conduct thorough research to understand the regulatory framework applicable to your fintech’s business activity in the target jurisdiction.

  • Identify the relevant laws, regulations, and guidelines specific to your fintech's niche.


Licenses & Registrations

  • Identify the specific licenses or registrations required for the fintech's planned operations.

  • Ensure all licenses and registrations are obtained and are up to date.


License Application

  • Prepare a comprehensive license application with all the required information, documentation, and supporting materials.

  • You will be required to provide details about your fintech's business activities, operational processes, risk management procedures, compliance policies, financial statements, background checks of key individuals, and any other information specific to the licensing requirements.


Ongoing Compliance and Reporting

  • Once licensed, your fintech must establish and maintain ongoing compliance with regulatory requirements.

  • Implement and adhere to compliance policies and procedures, reporting obligations, record-keeping requirements, and any ongoing regulatory filings.


Regulatory Monitoring and Updates

  • Stay updated on regulatory changes and requirements that may impact the fintech's licensed activities. 


By following these practical steps, organizations can establish strong IT governance, mitigate risks, and enhance operational efficiency in the rapidly evolving technology ecosystem.

3.3 Electronic Transactions and Payment Processing 

According to recent data from Statista, global e-commerce sales are projected to surpass $6.913 trillion by 2024, highlighting the growing reliance on secure and efficient electronic payment systems.

To meet these challenges, fintech companies must prioritize compliance with regulations governing electronic signatures, data transmission, and customer authentication.

According to a report by the Association of Certified Fraud Examiners (ACFE), organizations lose an estimated 5% of their annual revenues to fraud. Therefore, adopting stringent security measures is not only essential for regulatory compliance but also for safeguarding financial assets and maintaining customer trust.

Next are the practical steps for implementing secure electronic transactions and payment processing systems:

Electronic Signatures and Records Regulations Compliance

  • Familiarize yourself with relevant laws and regulations governing electronic signatures and records, such as the Electronic Signatures in Global and National Commerce Act (ESIGN) and the European Union's eIDAS regulation.

  • Implement electronic signature solutions that meet legal requirements, ensuring the authenticity, integrity, and non-repudiation of electronic transactions and records.


Secure Payment Processing Systems and Data Transmission

  • Implement robust encryption protocols, such as Transport Layer Security (TLS) or Secure Sockets Layer (SSL), to secure payment data during transmission. Use tokenization or encryption to protect sensitive payment information when stored.


Regular Assessments and Updates

  • Regularly assess and update security measures for payment processing systems, including firewalls, intrusion detection/prevention systems, and antivirus software.


Verification and Authentication of Customer Transactions

  • Implement multi-factor authentication methods to verify customer identities for high-risk transactions or sensitive account activities.


Transactional Patterns 

  • Monitor and analyze transactional patterns to identify suspicious activities or anomalies that may indicate fraudulent behavior.


Fraud Detection and Prevention Mechanisms

  • Deploy real-time fraud monitoring systems that use machine learning algorithms and behavioral analytics to detect and mitigate fraudulent activities.

  • Stay current with emerging fraud trends and collaborate with industry partners and payment networks to share information and enhance fraud prevention strategies.


A flaw in the payment systems of global neobank Revolut allowed criminals to steal more than $20 million over several months last year.

By prioritizing the above-listed measures and best practices, you can build a secure foundation for electronic transactions, protect customer data, and mitigate the risks associated with fraud and cyber threats in the dynamic fintech landscape.

Would you like to learn more about Information Security and IT Governance?

4. Reporting and Documentation

In 2022, the financial services industry was subject to significant fines globally. For instance, in Germany, financial regulators imposed 46 fines, the majority due to regulatory reporting delays. 

That said, regulatory reporting and documentation are as important as licensing and registration:

  • 4.1 Regulatory Reporting  

  • 4.2 Recordkeeping

  • 4.3 Document Management


Find our suggested best practices for reporting and documentation compliance in the fintech compliance checklists below.

4.1 Regulatory Reporting

Regulatory reporting for fintechs can be time-consuming and, in certain cases, quite stressful due to the tight reporting deadlines.

Discover why reporting is so important and how to make it easier.


Timely Submission of Regulatory Reports

  • Establish a clear reporting schedule and allocate responsibilities to relevant team members.

  • Conduct periodic reviews of reporting requirements to stay updated with any changes or new obligations.


Periodic Internal Reviews to Ensure Accuracy of Reporting

  • Develop a robust internal review process to validate the accuracy and completeness of reported data.

  • Implement reconciliation procedures to compare reported data with underlying supporting documentation.


Procedures for Regulatory Inquiries and Audits

  • Designate a point of contact to handle regulatory inquiries and audits efficiently.

  • Develop a clear protocol for responding to regulatory inquiries, including proper documentation and timely communication.


By implementing these important measures, you demonstrate to the regulators that you implemented and maintained a robust compliance program in the rapidly evolving regulatory landscape.

4.2 Recordkeeping

Effective recordkeeping is vital for fintechs to comply with regulatory requirements and maintain transparency. Publicly available statistics highlight the significance of robust recordkeeping practices in the industry.

Are you wondering about what recordkeeping policies meet fintech regulator requirements?

Multiple sources of recordkeeping policies, including ISO 15489, offer guidance for creating a record management policy.

The checklist below outlines practical steps to establish a comprehensive recordkeeping policy, maintain crucial customer records, and ensure compliance with record retention regulations. 

Recordkeeping Policy

  • Create a clear and detailed policy that outlines how records should be created, organized, stored, and accessed within the organization.


Records of Customer Transactions, Communications, and Complaints

  • Keep accurate and complete records of all customer interactions, including transaction details, communication logs, and records of complaints or inquiries.

  • These records help track customer activities, facilitate dispute resolution, and provide evidence of compliance with regulatory requirements.


Records retention as mandated by regulations

  • Determine the specific retention periods mandated by relevant regulations for different types of records.

  • Ensure that records are securely stored and retained for the required duration, considering factors such as customer transactions, regulatory audits, litigation, and industry best practices.


By establishing a comprehensive recordkeeping policy, maintaining customer records, and complying with retention regulations, your fintech can enhance transparency, demonstrate compliance, and manage records effectively.

For the latest insights on recordkeeping compliance, please visit:  

4.3 Document Management

Is your organization still managing and sharing documents via email? Data shows that 50% of knowledge workers' time is lost preparing documents. Though a shared drive seems like a viable solution, 93% of employees have to recreate documents missing from the company network.

All organizations experience business risks and productivity losses due to poor document management.

This checklist outlines practical steps to establish document control processes, ensure version control and accessibility of documents, and implement document management policies:


Document control 

  • Implement procedures for creating, approving, and updating policies and procedures.

  • Define roles and responsibilities for document management, including document creation, review, and revision processes. 


Version control and proper distribution of documents

  • Maintain a systematic approach to version control, ensuring that only the latest approved versions of documents are used.

  • Implement mechanisms to track changes, manage document revisions, and ensure proper distribution to authorized individuals.


Centralized document repository

  • Implement processes to ensure documents are readily accessible to authorized personnel, facilitating effective collaboration and information sharing.

  • Regularly review and update documents to reflect changes in regulations, industry best practices, or internal policies.


By implementing these measures, your fintech can enhance operational efficiency, mitigate risks, and demonstrate a commitment to effective document management in an increasingly digital business environment. Ultimately, compliance with regulatory reporting requirements and documentation is a strategic advantage and a productivity boost.

Would you like to learn more about compliance as a strategic advantage?

Practical Usage of Fintech Compliance Checklist

This outline serves as a general guide of best practices for fintech founders and compliance executives who need to implement a robust compliance function for their growing fintech.

Please note that specific fintech compliance requirements may vary depending on the jurisdiction and type of fintech business. It is advisable to consult with experienced regulatory compliance experts who work in your particular niche to ensure full compliance with applicable laws and regulations.

Need help with setting up your fintech compliance function and seeking advice, support or more information? Reach out today for a free consultation.

How Can InnReg Help?

InnReg is a global regulatory compliance and operations consulting team serving financial services companies since 2013.

We are especially effective at launching and scaling fintechs with innovative compliance strategies and delivering cost-effective managed services, assisted by proprietary regtech solutions.

If you need help with compliance, reach out to our regulatory experts today:

Published on Sep 11, 2023

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Last updated on Apr 24, 2024

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