Managing compliance in the financial services industry is a complex and ever-changing task. There are numerous regulatory bodies and requirements that firms must adhere to in order to operate legally and ethically. Compliance is critical to maintaining the integrity of the financial system and protecting consumers. In this list, we have compiled 100+ compliance abbreviations that are essential in financial services. Each acronym is accompanied by its meaning to help you understand the complexities of managing compliance.

Key Compliance Abbreviations

1. AML – Anti-Money Laundering: The process of detecting and preventing money laundering and terrorist financing.
2. BSA – Bank Secrecy Act: A US law that requires financial institutions to help prevent money laundering and terrorist financing.
3. CDD – Customer Due Diligence: The process of verifying the identity of a customer and assessing their risk level.
4. CFPB – Consumer Financial Protection Bureau: A US government agency that protects consumers in the financial services industry.
5. CRS – Common Reporting Standard: An international standard for the automatic exchange of financial account information.
6. DOL – US Department of Labor: A US government agency that regulates workplace activities.
7. EDD – Enhanced Due Diligence: A higher level of due diligence that is required for high-risk customers.
8. EMIR – European Market Infrastructure Regulation: A European Union regulation that regulates over-the-counter derivatives.
9. ESMA – European Securities and Markets Authority: A European Union regulatory body that oversees the securities and markets industry.
10. FATCA – Foreign Account Tax Compliance Act: A US law that requires foreign financial institutions to report on US account holders.
11. FCPA – Foreign Corrupt Practices Act: A US law that prohibits US companies from bribing foreign officials.
12. FINRA – Financial Industry Regulatory Authority: A US self-regulatory organization that oversees the securities industry.
13. GDPR – General Data Protection Regulation: A European Union regulation that protects the privacy of personal data.
14. GIPS – Global Investment Performance Standards: A set of ethical standards for investment performance reporting.
15. HMDA – Home Mortgage Disclosure Act: A US law that requires financial institutions to report on mortgage lending activities.
16. IFRS – International Financial Reporting Standards: A set of accounting standards used in many countries around the world.
17. IOSCO – International Organization of Securities Commissions: An international regulatory body that oversees securities markets.
18. KYC – Know Your Customer: The process of verifying the identity of a customer.
19. LIBOR – London Interbank Offered Rate: A benchmark interest rate that is used in financial contracts around the world.
20. MiFID – Markets in Financial Instruments Directive: A European Union directive that regulates financial markets.
21. MSB – Money Services Business: A business that provides money transfer or currency exchange services.
22. NFA – National Futures Association: A US self-regulatory organization that oversees the futures industry.
23. OFAC – Office of Foreign Assets Control: A US government agency that enforces economic sanctions.
24. PCAOB – Public Company Accounting Oversight Board: A US government agency that regulates auditors of public companies.
25. PEP – Politically Exposed Person: A person who holds a prominent public position.
26. PII – Personally Identifiable Information: Information that can be used to identify an individual.
27. PRA – Prudential Regulation Authority: A UK financial regulatory body responsible for the prudential regulation of financial institutions.
28. PSD – Payment Services Directive: A European Union directive that regulates payment services and payment service providers.
29. PTF – Personal Trading and Outside Business Activities: The process of monitoring and regulating personal trading and outside business activities of employees in the financial services industry.
30. RIA – Registered Investment Adviser: An investment adviser registered with the US Securities and Exchange Commission or a state securities regulator.
31. SAR – Suspicious Activity Report: A report that financial institutions are required to file if they suspect that a transaction or customer activity is suspicious.
32. SEC – US Securities and Exchange Commission: A US government agency that regulates the securities industry.
33. SM&CR – Senior Managers and Certification Regime: A UK regulation that aims to improve accountability and conduct in financial services firms.
34. SOX – Sarbanes-Oxley Act: A US law that requires public companies to implement internal controls and financial reporting practices.
35. SRO – Self-Regulatory Organization: An organization that regulates its own industry, such as FINRA.
36. TCF – Treating Customers Fairly: A UK regulatory initiative that requires financial firms to treat their customers fairly.
37. UDAAP – Unfair, Deceptive, or Abusive Acts or Practices: A US legal concept that prohibits financial institutions from engaging in unfair, deceptive, or abusive practices.
38. UDI – Unique Device Identifier: A unique code that identifies medical devices.
39. UPI – Unique Product Identifier: A unique code that identifies financial products.
40. VAT – Value-Added Tax: A tax on the value added at each stage of the production and distribution of goods and services.
41. VOE – Verification of Employment: The process of verifying a borrower’s employment status.
42. WORM – Write Once, Read Many: A data storage technology that prevents data from being modified or deleted.
43. YTD – Year-to-Date: A financial metric that shows the performance of an investment or company from the beginning of the year to the present.
44. CCPA – California Consumer Privacy Act: A California state law that regulates the collection and use of personal data.
45. CIP – Customer Identification Program: The process of verifying the identity of a customer in compliance with the BSA.
46. COI – Conflict of Interest: A situation where a person or organization has competing interests or loyalties that may affect their decision-making.
47. CPD – Continuing Professional Development: The process of improving professional knowledge and skills.
48. CRA – Community Reinvestment Act: A US law that requires financial institutions to meet the credit needs of the communities they serve.
49. CTA – Commodity Trading Advisor: An individual or firm that provides advice on commodity futures trading.
50. CTR – Currency Transaction Report: A report that financial institutions are required to file for cash transactions over a certain amount.
51. DPA – Deferred Prosecution Agreement: An agreement between a prosecutor and a defendant where charges are suspended in exchange for certain conditions being met.
52. ESG – Environmental, Social, and Governance: A set of criteria that investors use to evaluate the sustainability and ethical impact of investments.
53. FBO – Foreign Banking Organization: A foreign bank that has a presence in the US.
54. FID – Fiduciary: A person or organization that is entrusted to act in the best interests of another person or organization.
55. FISA – Foreign Intelligence Surveillance Act: A US law that governs surveillance activities for national security purposes.
56. FSA – Financial Services Authority: A UK regulatory body that was replaced by the PRA and FCA.
57. FTT – Financial Transaction Tax: A tax on financial transactions, such as trades or transfers of securities.
58. FX – Foreign Exchange: The market for buying and selling currencies.
59. HFT – High-Frequency Trading: A type of algorithmic trading that uses high-speed computers and complex algorithms to execute trades.
60. HNW – High Net Worth: A person or household with a high
61. net worth, usually defined as having at least $1 million in investable assets.
62. IBAN – International Bank Account Number: A standardized system for identifying bank accounts across national borders.
63. IFRS – International Financial Reporting Standards: A set of accounting standards used by companies in many countries around the world.
64. KYC – Know Your Customer: The process of verifying the identity of a customer and assessing their risk level for money laundering or terrorist financing.
65. LIBOR – London Interbank Offered Rate: A benchmark interest rate that banks use to lend to each other in the interbank market.
66. MiFID – Markets in Financial Instruments Directive: A European Union law that regulates financial markets and investment services.
67. NDA – Non-Disclosure Agreement: An agreement that prohibits the disclosure of confidential information.
68. NFA – National Futures Association: A US self-regulatory organization that oversees the futures industry.
69. OFAC – Office of Foreign Assets Control: A US government agency that administers economic sanctions programs.
70. PEP – Politically Exposed Person: A person who holds or has held a prominent public position and may be at higher risk for corruption or money laundering.
71. PII – Personally Identifiable Information: Information that can be used to identify a specific individual.
72. PRA – Prudential Regulation Authority: A UK regulatory body that oversees the safety and soundness of financial institutions.
73. PSD2 – Payment Services Directive 2: A European Union law that regulates payment services and promotes competition.
74. RWA – Risk-Weighted Assets: A method of measuring the risk of a bank’s assets for regulatory capital purposes.
75. SAR – Suspicious Activity Report: A report that financial institutions are required to file if they suspect that a transaction or customer activity is suspicious.
76. SEC – US Securities and Exchange Commission: A US government agency that regulates the securities industry.
77. SM&CR – Senior Managers and Certification Regime: A UK regulation that aims to improve accountability and conduct in financial services firms.
78. SOX – Sarbanes-Oxley Act: A US law that requires public companies to implement internal controls and financial reporting practices.
79. SRO – Self-Regulatory Organization: An organization that regulates its own industry, such as FINRA.
80. TCF – Treating Customers Fairly: A UK regulatory initiative that requires financial firms to treat their customers fairly.
81. UDAAP – Unfair, Deceptive, or Abusive Acts or Practices: A US legal concept that prohibits financial institutions from engaging in unfair, deceptive, or abusive practices.
82. UDI – Unique Device Identifier: A unique code that identifies medical devices.
83. UPI – Unique Product Identifier: A unique code that identifies financial products.
84. VAT – Value-Added Tax: A tax on the value added at each stage of the production and distribution of goods and services.
85. VOE – Verification of Employment: The process of verifying a borrower’s employment status.
86. WORM – Write Once, Read Many: A data storage technology that prevents data from being modified or deleted.
87. YTD – Year-to-Date: A financial metric that shows the performance of an investment or company from the beginning of the year to the present.

Why are these relevant?

Financial institutions must comply with a wide range of regulations and standards, ranging from anti-money laundering laws to data privacy regulations. Compliance is a critical part of the financial industry and failure to comply can result in severe legal and reputational consequences. These 87 compliance acronyms are just a small sample of the vast array of regulations that financial institutions must navigate. By staying up to date with these, companies create an in-depth understanding of compliance regulations they must adhere to.

15 acronyms used in Corporate Data and Security:

1. BYOD – Bring Your Own Device: The practice of allowing employees to use their own devices for work purposes.
2. DLP – Data Loss Prevention: Techniques and technologies used to prevent unauthorized access, use, or dissemination of sensitive data.
3. DRM – Digital Rights Management: Technologies used to protect digital content from unauthorized use, distribution, and piracy.
4. IDS – Intrusion Detection System: Software and hardware used to detect and prevent unauthorized access to corporate networks and systems.
5. IPS – Intrusion Prevention System: Software and hardware used to detect and prevent unauthorized access to corporate networks and systems.
6. MDM – Mobile Device Management: The practice of managing and securing mobile devices used by employees for work purposes.
7. NAC – Network Access Control: Technologies and policies used to control access to corporate networks and resources.
8. PII – Personally Identifiable Information: Any information that can be used to identify an individual, such as name, address, social security number, etc.
9. PKI – Public Key Infrastructure: A system of digital certificates, keys, and protocols used to secure communications and transactions.
10. SSO – Single Sign-On: A system that allows users to access multiple applications and systems with a single set of credentials.
11. TPM – Trusted Platform Module: A hardware-based security chip used to store cryptographic keys and provide secure booting and other security functions.
12. UTM – Unified Threat Management: A security solution that combines multiple security functions, such as firewall, antivirus, and intrusion detection/prevention.
13. VPN – Virtual Private Network: A secure network connection that allows remote users to access corporate networks and resources.
14. WAF – Web Application Firewall: A security solution that protects web applications from common attacks such as SQL injection and cross-site scripting.
15. ZTNA – Zero Trust Network Access: A security model that assumes that all users and devices accessing corporate networks are untrusted and require authentication and authorization for every transaction.

Why is it important to understand these compliance abbreviations?

Compliance with regulatory bodies is essential for businesses to avoid legal issues, financial penalties, and reputational damage. Regulatory bodies establish guidelines to ensure that companies operate in a safe, fair, and ethical manner. For businesses that deal with communication, there are several regulatory bodies to consider, such as the Federal Communications Commission (FCC), the National Telecommunications and Information Administration (NTIA), and the European Telecommunications Standards Institute (ETSI).

To achieve compliance, businesses must stay informed, engage with industry associations, consult with experts, train employees, monitor communication activities, and respond promptly to customer complaints.