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What type of compliance is required for Fintech companies?

HRIS as a Compliance Safeguard

The Critical Role of HR in FinTech Compliance

Omni HR: FinTech’s Partner in Compliance Management

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Summary. FinTech companies navigate a complex web of global regulations, requiring robust compliance and risk management strategies. HR plays a crucial role in these efforts, and HRIS systems are essential tools for streamlining and securing regulatory management. These systems automate record-keeping, enhance data security through encryption and access controls, and support compliance with evolving financial regulations and data privacy laws. By centralizing data and automating key processes, HRIS empowers FinTech companies to proactively monitor risks, conduct audits, and ensure adherence to international standards, ultimately mitigating penalties and fostering sustainable growth.

Compliance and risk management are at the heart of organizational success for the FinTech sector. For global companies, managing competing laws and regulations across regions requires clear policies, streamlined systems, and a fierce attention to detail.

HR teams are at the core of these efforts, serving as the gatekeeper of compliance as well as strategic initiatives that keep teams performing. HRIS systems provide the ecosystem necessary for secure, streamlined regulatory management that integrate with broader organizational initiatives.

What type of compliance is required for Fintech companies?

In every country around the world, FinTech companies operate under intense regulatory scrutiny, facing a complex web of requirements that vary country-to-country, designed to protect consumers and maintain financial system integrity. FinTech companies operating in the APAC region face a diverse regulatory environment that varies by country. These stringent compliance requirements are a crucial part of a FinTech’s success and demand routine review as regulations update and change.

Some of the key regulatory frameworks include:

Financial Regulations

Payment Services Act (Singapore): The Payment Services Act 2019 (PS Act) is a flexible framework for the regulation of payment systems and payment service providers in Singapore. It provides the oversight of payment systems, and connected matters and helps make consequential and related amendments to certain other Acts.
Digital Payment Token Services Guidelines (Singapore): The Digital Payment Token Services Guidelines (PS-G02) are compliance requirements for crypto service providers in Singapore. In essence, these guidelines outline the Monetary Authority of Singapore’s (MAS) expectations that Digital Payment Token (“DPT”) service providers should not promote their DPT services to the general public in Singapore. DPT service providers include payment institutions, banks and other financial institutions, as well as applicants under the PS Act.
Hong Kong's Payment Systems and Stored Value Facilities Ordinance (Hong Kong): The Payment Systems and Stored Value Facilities Ordinance (PSSVFO) provides the legal basis for the powers of the Hong Kong Monetary Authority (HKMA) in relation to the regulation of SVF and RPS. The issue of the SVFs is subject to a licensing regime administered by the Monetary Authority (MA).
Australia's ePayments Code: The ePayments Code plays an important role in the regulation of electronic payment facilities in Australia, set out by the Australian Securities and Investments Commission (ASIC). It applies to consumer electronic payment transactions, including ATM, EFTPOS and credit card transactions, online payments, internet and mobile banking, and BPAY.
Bank Indonesia Regulation No. 19/12/PBI/2017: Reg 19/12 2017 requires all eligible FinTech providers to register with Bank Indonesia (BI), other than providers that have already secured a BI license, or providers that fall under Indonesian Financial Services Authority (OJK) supervision or that of another relevant authority.

Omni’s HRIS helps keep FinTech companies compliant with financial regulations through secure document storage to keep compliance guidelines readily available to their teams. Automated updates help ensure compliance deadlines are met and prepared for, and tracking capabilities enable HR to manage employee training.

Data Protection and Privacy

Personal Data Protection Act (Singapore): The Personal Data Protection Act (PDPA) provides a baseline standard of protection and guidelines for collecting, using, and disclosing personal data
Personal Data (Privacy) Ordinance (Hong Kong): The Personal Data Privacy Ordinance (PDPO) prohibits the use of personal data for any new purpose which is not or is unrelated to the original purpose when collecting the data, unless with the data subject's express and voluntary consent. A data subject can withdraw his/her consent previously given by written notice.
Privacy Act and Australian Privacy Principles (APPs): Australia’s Privacy Act 1988 is a data protection legislation that mandates how companies handle personal information, especially in data-intensive sectors like FinTech.
Personal Information Protection Act (South Korea): Under South Korea’s Personal Information Protection Act (PIPA), there must be a specific legitimate basis for collection and use of personal information, with the most representative basis being the data subject's consent.

Omni makes data protection and privacy simple with robust access controls, AES-256 encryption standard, and end-to-end encryption to ensure maximum protection to your data.

Our compliance-ready features make keeping your data secure from an employee level seamless. Regular compliance reporting and consent management capabilities ensure your data is secure at every level.

Anti-Money Laundering (AML) Requirements

Anti-money laundering (AML) and countering the financing of terrorism (CFT) are two of the more commonly known requirements imposed on the FinTech sector. However they can vary country-by-country in name as well as the parameters of the law. Here are a few examples:

MAS Notice PSN02: Singapore's anti-money laundering (AML) and countering the financing of terrorism (CFT) requirements for digital payment token service providers
Hong Kong's Cap. 615: Anti-Money Laundering and Counter-Terrorist Financing requirements for Hong Kong.
AUSTRAC regulations: Australia's AML/CTF regulator, AUSTRAC regulates more than 17,000 individuals, businesses and organisations.
Bank Secrecy Act: R.A. 9160 is the Philippines' primary legislation designed to prevent money laundering and financial crimes. It sets stringent compliance requirements for banks, insurance companies, and other financial institutions to detect, report, and prevent illicit transactions.

Cybersecurity Standards

Cybersecurity standards for FinTechs include requirements for protecting sensitive financial data and systems, including encryption protocols, access controls, and incident response procedures. These standards typically require FinTechs to implement robust security measures, from secure API endpoints to multi-factor authentication, while maintaining detailed audit trails and regular security assessments. Here are a few key cybersecurity standards across APAC:

MAS Technology Risk Management Guidelines: Singapore's cybersecurity standards for financial institutions are a set of risk management principles and best practices to guide financial institutions to establish technology risk governance and oversight, as well as maintain IT and cyber resilience.
Hong Kong Monetary Authority's Cybersecurity Fortification Initiative: Hong Kong’s Cybersecurity Fortification Initiative (CFI) was implemented in December 2016 with a view to raising the cyber resilience of Hong Kong’s banking system. The initiative is underpinned by three pillars, Cyber Resilience Assessment Framework (C-RAF), Professional Development Programme (PDP), and Cyber Intelligence Sharing Platform (CISP).
APRA CPS 234: The Australian Prudential Standard aims to ensure that an APRA-regulated entity takes measures to be resilient against information security incidents (including cyberattacks) by maintaining an information security capability commensurate with information security vulnerabilities and threats.

[Please note: compliance regulations vary based on a variety of criteria including company size and structure, specific financial services offered, local regulatory requirements, changes in legislation, special economic zone requirements and regional regulatory sandbox participation.]

HRIS as a Compliance Safeguard

While Human Resource Information Systems (HRIS) streamline HR operations, their value in managing financial regulations and protecting sensitive data makes them particularly valuable for FinTech organizations. By maintaining compliance standards and strengthening data security, HRIS helps companies avoid penalties, conduct international business, and develop relationships with established financial institutions. As regulations become more complex, HRIS platforms provide the structured oversight needed to meet legal requirements while supporting business growth.

A robust HRIS serves as a powerful tool in maintaining compliance through several key features:

Automated Record-Keeping and Compliance Management

Document retention requirements and stringent record keeping practices are essential for FinTech compliance. De-centralized and manual systems can cause delays in regulatory reporting, cause out of date and inaccurate information, and present delays in keeping current with changing laws and regulations.

HRIS systems present centralized, automated systems to help HR teams:

Maintain accurate, up-to-date records of employee information
Track work hours, leave balances, and benefits automatically
Generate required documentation for audits and legal proceedings
Provide regular updates to reflect changes in labor laws and regulations

Enhanced Data Security Measures

The protection of sensitive employee data is a top priority for any organization. As data breaches and cyberattacks increase, safeguarding HR data is more critical than ever. An HRIS provides several layers of security to protect this sensitive information.

HRIS systems offer enhanced security to protect employee and user data in the following ways:

Implements role-based access control for sensitive information
Employs data encryption both at rest and in transit
Maintains detailed audit trails of all system activities
Provides regular security updates to address emerging threats

Omni implements an AES-256 encryption standard (same as what banks use) to protect the transmission of data to our site. Our servers are located in physically secure, ISO 27001 certified data centers and we apply end-to-end encryption to ensure maximum protection to your employee data.

Our compliance-ready features make keeping your data secure from an employee level seamless. Regular compliance reporting, access controls, and consent management capabilities ensure your data is secure at every level.

“Omni’s automated workflows and streamlined data management has made our HR procedures seamless, and we can manage employee records with just a few clicks. What I love most about Omni is how customizable the platform is to meet our unique needs.” - Wiji Mulyati, Engagement & Experience Lead at Ajaib

Regulatory Compliance Support

Compliance regulations are constantly changing, making it challenging to remain compliant, especially when running multi-country operations. Implementing an automated system helps FinTech HR teams remain up to date on the latest developments in regulatory compliance and avoids costly penalties.

Here are some key ways HRIS support compliance:

Automates compliance with labor laws like Labor Code Philippines
Facilitates GDPR and data protection compliance
Manages employee consent for data processing
Supports data subject access and erasure requests

Proactive Risk Monitoring

In addition to the multitude of external factors that affect compliance for FinTech organizations, employee behavior and HR strategy also requires close consideration. HRIS help monitor and safeguard organizational threats from the inside through the following HR software features:

Conducts real-time monitoring of HR activities
Flags unusual behavior or potential violations
Enables regular compliance audits
Supports incident response planning

The Critical Role of HR in FinTech Compliance

HR leaders in the FinTech space are required to have a firm grasp on the complexities, challenges and unique needs of the FinTech industry. From evolving technology, the ongoing competition for skilled tech talent and the varied landscape of regulatory compliance, HR teams must be able to navigate these challenges and develop strategic plans to align with the company goals.

Simply put, HR is the gatekeeper for regulatory compliance within an organization. It’s a task that requires constant learning and monitoring. Here’s an overview of the areas in which FinTech HR must oversee to maintain compliance for their organizations:

Policy Development and Enforcement

Creating comprehensive compliance documentation: Develop detailed documentation that aligns with region-specific or country-specific regulations like MAS Guidelines, PDPA, and local financial services requirements.
Establishing clear procedures for business processes: Map out step-by-step procedures that incorporate regional considerations such as cross-border data transfers and local business practices.
Ensuring alignment with regulatory requirements: Regularly review and update policies to maintain compliance with evolving regulatory frameworks.
Managing policy updates and communications: Implement a structured communication system that accounts for multiple languages and cultural nuances across regions.

Omni’s document management helps HR store and administer key compliance documents and procedures to help FinTech’s remain compliant. Our workflow automation supports policy acknowledgements that keep your team up to date on the more recent and relevant regulatory updates.

Training and Education

Coordinating compliance training programs: Design region-specific training modules that address unique regulatory requirements and cultural considerations.
Providing updates on new regulations: Maintain a proactive approach to communicating regulatory changes across jurisdictions, particularly in rapidly evolving markets like Singapore and Hong Kong.
Conducting refresher courses: Schedule regular refresher training that incorporates real-world examples from relevant markets to enhance relevance and understanding.
Maintaining training records: Implement robust tracking systems that satisfy local regulatory requirements for employee training documentation across jurisdictions.

Read more: APAC HR Compliance Checklist

Omni’s reports and analytics help HR teams track compliance training programs, ensuring your entire team is up to date with regulatory requirements and standards. Maintain training records, administer refresher courses, and provide company or team-wide updates on regulations in one, centralized system.

Risk Management

Protecting data privacy: Implement comprehensive data protection measures that comply with various privacy laws, including Singapore's PDPA, Hong Kong's PDPO, and Philippines’ DPA.
Enhancing cybersecurity awareness: Develop targeted cybersecurity programs that address region-specific threats and align with regional frameworks like Singapore’s MAS TRM Guidelines.
Managing employee access controls: Establish strict access control protocols that consider local labor laws and data protection requirements across local regions.
Developing incident response plans: Create detailed incident response procedures that comply with breach notification requirements specific to each jurisdiction where your FinTech operates.

Omni HR: FinTech’s Partner in Compliance Management

With all of the complexities of FinTech compliance, where regulatory requirements span multiple jurisdictions and are constantly evolving, Omni stands out as the comprehensive HRIS solution designed for the unique challenges faced by your FinTech organization. With bank-grade AES-256 encryption, ISO 27001 certified data centers, and end-to-end encryption, we provide the robust security infrastructure essential for protecting your sensitive financial and employee data.

Why modern FinTech teams choose Omni

Omni's automated workflows and centralized document management system help your FinTech HR team maintain compliance across multiple regulatory frameworks, from Singapore's MAS Guidelines to Hong Kong's PDPO. Through features like automated compliance reporting, customizable access controls, and consent management capabilities, Omni transforms complex compliance requirements into manageable, streamlined processes.

For FinTech organizations looking to scale while maintaining regulatory compliance, Omni offers more than just an HRIS platform—we provide a strategic partnership that supports your growth while safeguarding your organization against compliance risks. As testified by our FinTech customers across the region, Omni's customizable platform adapts to your unique organizational needs while ensuring consistent compliance standards across operations.

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