FINRA Oversight report Emphasizes Crypto,Cybersecurity,and Compliance

⁣⁣ Updated May 28,2025

Teh ​Financial Industry⁢ Regulatory Authority (FINRA) ​has issued‍ its 2024 Annual Regulatory Oversight Report,offering ​insights ‍for member firms to bolster their compliance ‍procedures. The report synthesizes ‌recent regulatory actions,​ pinpointing key areas ⁤for⁢ organizations to ‍consider‌ in⁢ their compliance efforts.

A notable update from the 2023 edition is⁢ the ⁢inclusion of content regarding ⁤crypto assets. FINRA provides ‍guidance​ for firms navigating crypto asset-related risks and those ‍contemplating ​activities involving digital currencies. The report underscores the importance of cybersecurity and⁢ the monitoring of salespeople and financial advisors ‍involved in⁤ digital asset promotion.

Cybersecurity remains a critical concern. FINRA‌ noted an increase in the sophistication and frequency ‍of cybersecurity ‍incidents, including ⁢imposter websites, insider threats, ransomware attacks,⁣ and breaches at ​major vendors. The‍ report ‌also addresses Anti-Money Laundering ⁤(AML),fraud,and sanctions,reminding firms ‍of the necessity of a written AML program to comply with the Bank Secrecy Act.

Regulation Best Interest (Reg BI), Form CRS, and the Consolidated⁢ Audit Trail (CAT) ⁣are also covered in the report.

What’s⁢ next

Financial firms should carefully review FINRA’s 2024 report to strengthen their⁤ compliance programs,particularly ⁣in the areas⁤ of crypto asset risks,cybersecurity,and AML procedures. Staying informed and proactive is⁤ essential ⁤for⁤ navigating the evolving regulatory⁢ landscape.