Growing Concerns about Data Security and Privacy (Data explosion)
The ever-growing universe of technology, threats, and intricacies in the cybersecurity landscape is evolving at an increasing pace in which data security and privacy are a persistent challenge. Owing to the increased use of personal data in digital transactions; creates vulnerabilities and dependencies in two major threats – data security and privacy. To combat such threats data privacy rules and regulations complying with GDPR is necessary to be implemented and play an integral part of any best-practiced compliance program thereby thinking about the safety and security of consumers. Data privacy laws are designed to provide entities control on the process of information gathered, exchanged, and used whereas Data security laws lay emphasis on securing data from thefts and breaches and both data privacy and security have a common goal to protect sensitive data and mitigate risks. Data Security and Privacy Laws are created to provide companies control across their personal data as to how it is consolidated and handled. As a result, constraints on data protection can lead to severe issues.
Integration of AML solution with Data Security is becoming essential
The significance of embedding Data Privacy and Security Measures into Anti-Money Laundering and compliance programs is becoming of utmost importance for all financial institutions. Data privacy and security features in various stages throughout the KYC and EDD cycle. Due to which banks must ensure data privacy compliance is always their priority and point of focus. Enterprises are required to conduct enhanced due diligence in knowing their customers, thereby mitigating money laundering and corruption risk. If Banks fail to comply with the government regulations, there are chances they will be penalized. With transforming technology, regulators should ensure the Anti-Money Laundering environment has the clarity and flexibility to adapt to new technology innovations to prosper while safeguarding customer data and privacy.