The White House is on track to make many of its financial services policy priorities a reality by 2022. While progressives had hoped for a swift overhaul of financial policy in 2020, this time around, the White House has already filled key roles at the Treasury Department, Federal Reserve, consumer watchdog, and commodity markets regulator. And many more will be filled in the coming months.


As the financial landscape continues to evolve, regulatory authorities are focusing on improving cybersecurity preparedness. New regulations are increasing scrutiny and implementing new minimum standards, including cyber risk disclosures. In addition, more jurisdictions are increasing their involvement in cybersecurity, issuing warnings and sharing information with firms.

The financial industry is no exception. In the years to come, cybersecurity threats will grow more sophisticated. For example, AI will become a common attack vector and will be used more widely to steal money. In addition, financial institutions are turning to voice analysis as a security measure. However, the threat actor community has already cottoned onto this trend, and used voice analysis to steal $35 million from a bank in the United Arab Emirates. This is one reason why banks should not rely solely on one technology solution for cybersecurity.

Today, financial institutions are increasingly vulnerable to destructive cyberattacks. These attacks can destroy data, corrupt hard drives, or disrupt network connections. According to one survey, more than six-thirds of financial institutions reported an increase in such attacks over the past year.

Cross-border data transfers

While data has become a valuable commodity, it also has important implications from an economic and political perspective. Organizations may be required to store data in particular jurisdictions, and this can limit the services they can provide. In addition, there may be requirements to share data with foreign authorities. As a result, organizations must take proactive measures to address this uncertain landscape.

The expanded applicability scope includes regulatory departments and industry directors, as well as users of products and services. It also includes personal information. The definition of important data is specific, with examples of typical definitions. Furthermore, a new data minimization principle has been introduced, which includes determining a minimum quantity and function for each type of data.

Regulations on the transfer of personal data are needed to protect the data subjects in different countries. The Chinese government has published draft provisions on a standard contract for cross-border data transfers. The CAC has also released draft rules on the security assessment of cross-border data transfers. These rules can be used to protect the privacy rights of data subjects in China.

Compliance with government-mandated sanctions

Compliance with government-mandated sanctions is vital for companies and financial institutions to protect their reputations and avoid huge fines. Moreover, sanction violations have significant economic costs, including losses of business. Over the past five years, federal authorities have been particularly aggressive in prosecuting banks that violate their own rules. Since 2009, fifteen cases have been settled for fines of over $100 million. In 2014, France’s largest lender, BNP Paribas, pleaded guilty to processing billions of dollars on behalf of blacklisted entities. The bank was fined $9 billion and lost its ability to convert foreign currency into dollars for one year.

The EU imposed its third and fourth packages of sanctions against Russia on 15 March 2022. They included a ban on trading with Russian state-owned enterprises, an import ban on Russian iron, and a ban on new investments in the Russian energy sector. However, the EU did not impose sanctions on Russian oil or gas.


Regulators are attempting to address this issue in several ways. First, they are attempting to clarify what cryptocurrencies are and how they are regulated. Second, they are attempting to better understand the public’s interest in cryptocurrencies. The nonpartisan think tank Pew Research reported that more than one-fourth of all Americans are aware of cryptos, and 16% of those people have used, traded, or invested in them. Another study by the New York Digital Investment Group revealed that up to 46 million Americans currently own cryptos, which represents about 14% of the U.S. population.

Ultimately, regulating the crypto industry will be a complex process. It will require international coordination, as well as engagement with industry stakeholders. If regulation is too stringent, it may inhibit innovation and drive the industry to countries with more welcoming regulations. As the digital universe is increasingly global, it is imperative that the regulatory framework be clear and unified. While some jurisdictions have imposed outright bans and restrictions, these instances are relatively rare. Many regulatory bodies are scrambling to clarify their rules, and market participants are in need of certainty and clarity.