The US doesn’t have an overarching compliance regime for its fintechs, making it difficult to determine which regulations and licences they need to follow at any given time.
The more a fintech grows, expanding its marketing, increasing its profile and attracting press attention (both positive and negative), the more likely it is to be exposed to state and federal scrutiny of its compliance status. Non-compliance can quickly lead to huge fines, jail time, and reputational damage. US fintechs have seen an increase in the scrutiny of their compliance status in 2022. If you’re one of the 73 per cent of fintechs without a dedicated compliance officer, now is the time to get an idea of what you need to know.
Whether US-based or working with US clients, fintechs need to know what they want to achieve and have the necessary regulatory cover to ensure they can operate and fulfil their goals.
Five compliance factors US fintechs need to know, right now
