fintech-compliance

name	fintech-compliance
category	compliance
difficulty	advanced
compliance_standards	["PCI-DSS-v4.0.1","SOC2-Type-II"]
description	Payment card security, SOC2 compliance, and financial services regulatory requirements
prerequisites	["security-fundamentals","api-security"]
related_skills	["cloud-security","audit-logging"]
version	1.0.0

FinTech Compliance Skill

Overview

Master payment card industry security standards (PCI-DSS v4.0.1), SOC2 Type II compliance, and financial services regulatory requirements for secure payment processing and data protection.

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Level 1: Quick Reference (~800-1000 tokens)

PCI-DSS 12 Requirements Overview

Build and Maintain Secure Network and Systems

1. Install and maintain network security controls
2. Apply secure configurations to all system components

Protect Account Data 3. Protect stored account data 4. Protect cardholder data with strong cryptography during transmission over open, public networks

Maintain Vulnerability Management Program 5. Protect all systems and networks from malicious software 6. Develop and maintain secure systems and software

Implement Strong Access Control Measures 7. Restrict access to system components and cardholder data by business need to know 8. Identify users and authenticate access to system components 9. Restrict physical access to cardholder data

Regularly Monitor and Test Networks 10. Log and monitor all access to system components and cardholder data 11. Test security of systems and networks regularly

Maintain Information Security Policy 12. Support information security with organizational policies and programs

SOC2 Trust Service Criteria

Security (Common Criteria)

• Access controls (logical and physical)
• System operations and change management
• Risk mitigation

Availability

• System availability commitments
• Monitoring and incident response

Confidentiality

• Data classification and handling
• Confidential information protection

Merchant Levels

Level	Annual Transactions	Requirements
1	>6M	Annual onsite audit, quarterly network scans
2	1M-6M	Annual SAQ, quarterly network scans
3	20K-1M (e-commerce)	Annual SAQ, quarterly network scans
4	<20K (e-commerce) or <1M (other)	Annual SAQ, quarterly network scans (recommended)

Essential Checklist

• CDE Segmentation: Isolate cardholder data environment from other networks
• Encryption: All cardholder data encrypted at rest (AES-256) and in transit (TLS 1.2+)
• Tokenization: Replace PANs with tokens for non-payment operations
• Access Control: Unique user IDs, MFA for all CDE access, least privilege
• Logging: Centralized logging with 90+ day retention, automated monitoring
• Vulnerability Management: Quarterly scans, patch management, secure SDLC
• Incident Response: Documented plan, tested annually, 24/7 monitoring
• Physical Security: Restricted access to data centers, visitor logs, camera surveillance

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Level 2:

📚 Full Examples: See REFERENCE.md for complete code samples, detailed configurations, and production-ready implementations.

Implementation Guide (~4500-5500 tokens)

PCI-DSS v4.0.1 Detailed Requirements

PCI-DSS v4.0.1 Requirements Summary

📚 Complete Requirements: See REFERENCE.md for detailed sub-requirements, implementation guidance, and compliance validation procedures.

Requirements 1-12 Overview:

1. Network Security Controls: Firewalls, NSCs, CDE isolation
2. Secure Configurations: Vendor defaults changed, unnecessary services disabled
3. Protect Stored Data: Encryption at rest, minimize data retention, never store SAD
4. Protect Data in Transit: TLS 1.2+, strong cryptography for all PAN transmission
5. Malware Protection: Anti-malware on all systems, kept current, monitored
6. Secure Development: Threat modeling, secure coding, vulnerability management
7. Access Control: Least privilege, unique IDs, business need-to-know
8. Identification & Authentication: MFA for CDE access, strong passwords, credential management
9. Physical Security: Restricted facility access, badge systems, visitor logs
10. Logging & Monitoring: Audit trails, centralized logging, 90+ day retention
11. Security Testing: Quarterly vulnerability scans, annual penetration testing
12. Security Policy: Documented policies, awareness training, incident response

Each requirement contains multiple sub-requirements - see REFERENCE.md for complete compliance checklist.

Cardholder Data Environment (CDE) Segmentation

Network Segmentation Strategy

See REFERENCE.md for complete implementation.

Key Segmentation Controls:

1. Firewall rules whitelist only required protocols (HTTPS, database ports)
2. Network ACLs deny by default, permit by exception
3. VLANs separate CDE from other networks
4. Jump boxes/bastion hosts for administrative access
5. No direct internet access from CDE
6. Annual penetration testing validates segmentation

Payment Processing Security

Tokenization Implementation

See REFERENCE.md for complete implementation.

Encryption Requirements

Data State	Requirement	Algorithm	Key Length
At Rest	PAN encrypted	AES	256-bit minimum
In Transit	TLS 1.2+	ECDHE-RSA-AES256-GCM-SHA384	2048-bit RSA minimum
Backups	Encrypted	AES-256	256-bit
Key Storage	Encrypted KEK	AES-256	256-bit

Key Management Lifecycle

1. Generation: FIPS 140-2 Level 2+ HSM
2. Distribution: Encrypted channels, split knowledge
3. Storage: Separate from encrypted data, access logged
4. Rotation: Annual minimum, or upon compromise
5. Destruction: Secure deletion per NIST SP 800-88

SOC2 Type II Compliance

Trust Service Criteria Mapping

CC1: Control Environment

• Board oversight of security and privacy
• Management philosophy and operating style
• Organizational structure and assignment of authority
• Commitment to competence
• Human resource policies

CC2: Communication and Information

• Internal communication channels
• External communication channels
• Information quality
• Management and board reporting

CC3: Risk Assessment

• Risk identification and assessment
• Fraud risk assessment
• Risk response and monitoring

CC4: Monitoring Activities

• Ongoing and separate evaluations
• Deficiency reporting and remediation

CC5: Control Activities (Logical and Physical Access)

• Selection and development of control activities
• Technology controls
• Policies and procedures deployment

CC6: Logical and Physical Access Controls

• Prior to issuing credentials, entity registers and authorizes new users
• Credentials and access are removed when access is no longer required
• Entity reviews credentials and access rights
• Physical access restricted to authorized personnel
• Logical access restricted based on least privilege

CC7: System Operations

• Change management procedures
• Configuration management
• Incident management
• Backup and recovery procedures

CC8: Change Management

• Change authorization and approval
• Testing procedures
• Deployment procedures
• Documentation requirements

CC9: Risk Mitigation

• Vulnerability identification and assessment
• Threat protection mechanisms
• Security patch management
• Malware detection and prevention

A1: Availability

• Monitoring system capacity and performance
• Environmental protections (fire, flood, temperature)
• Redundancy and failover procedures
• Incident response for availability incidents

C1: Confidentiality

• Confidential information identified and classified
• Confidential information encrypted at rest and in transit
• Access to confidential information restricted
• Confidential information disposal procedures

Audit Readiness and Evidence Collection

Evidence Requirements by Control Category

Control Category	Evidence Types	Collection Frequency
Access Control	User provisioning logs, access reviews, MFA configs	Quarterly
Change Management	Change tickets, approval records, test results	Per change
Encryption	Cipher configurations, key rotation logs, TLS scans	Monthly
Logging	Log retention verification, SIEM configurations	Monthly
Vulnerability Management	Scan reports, remediation tickets, patch schedules	Quarterly
Incident Response	Incident tickets, postmortem reports, tabletop exercises	Per incident
Physical Security	Badge logs, visitor logs, camera footage samples	Quarterly
Vendor Management	SOC2 reports, SLAs, due diligence assessments	Annually

Automated Evidence Collection

See REFERENCE.md for complete implementation.

Compliance Automation

Continuous Compliance Monitoring Architecture

See REFERENCE.md for complete implementation.

Sample Compliance Rules (AWS Config)

See REFERENCE.md for complete implementation.

Incident Response for Payment Security

Critical Incident Types

1. Suspected PAN Exposure

   • Immediate containment: Isolate affected systems
   • Forensic preservation: Snapshot VMs, preserve logs
   • Notification: Payment brands within 72 hours
   • PFI (Payment Forensic Investigator) engagement

2. CDE Breach

   • Activate IR team 24/7
   • Preserve evidence (RAM dumps, disk images)
   • Engage legal counsel
   • Notify acquiring bank and card brands
   • Retain PFI for investigation

3. Authentication Bypass

   • Immediately revoke compromised credentials
   • Force password resets for affected accounts
   • Review and enhance MFA controls
   • Audit access logs for unauthorized activity

4. Malware in CDE

   • Isolate infected systems (network segmentation)
   • Deploy anti-malware tools
   • Scan all CDE components
   • Rebuild compromised systems from known-good images
   • Enhance monitoring for persistence mechanisms

Compliance Reporting Timeline

Incident Type	Notification Deadline	Recipient
PAN compromise	72 hours	Payment brands, acquirer
CDE breach	72 hours	Payment brands, PFI
SOC2 control failure	Next report period	Auditor, customers
GDPR breach (EU)	72 hours	Data Protection Authority
State breach laws (US)	30-90 days (varies)	State AG, affected individuals

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Level 3: Deep Dive Resources

Bundled Resources

1. resources/pci-dss-checklist.md - Complete 78-sub-requirement checklist with validation procedures
2. templates/soc2-control-mappings.yaml - SOC2 TSC to implementation control mappings
3. templates/tokenization-implementation.py - Production-ready Stripe/Braintree tokenization
4. templates/network-segmentation.yaml - CDE network architecture and firewall rules
5. scripts/audit-evidence-collector.sh - Automated evidence collection for quarterly audits
6. templates/compliance-dashboard.json - Grafana dashboard for real-time compliance monitoring

Official Standards References

• PCI DSS v4.0.1: https://www.pcisecuritystandards.org/document_library
• PCI SAQ: Self-Assessment Questionnaires for merchant levels
• PA-DSS: Payment Application Data Security Standard
• SOC2: https://www.aicpa.org/interestareas/frc/assuranceadvisoryservices/aicpasoc2report.html
• NIST Cybersecurity Framework: https://www.nist.gov/cyberframework

Industry Resources

• PCI SSC: https://www.pcisecuritystandards.org
• Cloud Security Alliance (CSA): https://cloudsecurityalliance.org
• ISACA: https://www.isaca.org (CISA, CRISC certifications)
• SANS Institute: Payment card security courses

Complementary Skills

• security-fundamentals: Foundational security principles
• api-security: Secure API design for payment endpoints
• cloud-security: Cloud-specific compliance (AWS, Azure, GCP)
• audit-logging: Centralized logging and SIEM implementation

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Quick Win: 30-Minute Compliance Assessment

# Run automated compliance scan
git clone https://github.com/prowler-cloud/prowler
cd prowler
./prowler aws --compliance pci_dss_v4.0.1

# Check TLS configurations
nmap --script ssl-enum-ciphers -p 443 payment-api.example.com

# Verify log retention
aws logs describe-log-groups | jq '.logGroups[] | select(.retentionInDays < 90)'

# Review IAM MFA enforcement
aws iam get-account-summary | jq '.SummaryMap | {MFADevices, AccountMFAEnabled}'

# Scan for exposed secrets
trufflehog git https://github.com/yourorg/payment-service --json

Expected Outcomes:

• PCI compliance posture report (automated scan)
• TLS cipher suite compliance verification
• Log retention gap analysis
• MFA enforcement status
• Secret exposure detection

Best Practices

• Maintain PCI DSS compliance through quarterly scans and annual audits
• Implement defense-in-depth with multiple security layers
• Automate compliance evidence collection for audit readiness
• Regularly test incident response procedures
• Keep security policies updated and accessible to all personnel
• Conduct ongoing security awareness training
• Monitor for emerging threats and regulatory changes

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Version: 1.0.0 Last Updated: 2025-10-17 Compliance Standards: PCI-DSS v4.0.1, SOC2 Type II