Top 7 FinTech Compliance Requirements (KYC, KYB, AML, SOC 2, PCI, FFIEC) for US Apps

Building a FinTech app for the United States market is one of the biggest opportunities today — but also one of the most regulated. Whether you’re launching a digital banking solution, personal finance manager, trading app, lending platform, or a subscription billing system, understanding and adhering to FinTech compliance requirements in the US is non-negotiable.

Compliance is not just about avoiding penalties. It’s about trust. Your users trust you with their identity, their money, and their financial behavior. When you meet the highest compliance standards, you earn the right to scale.

At FintegrationFS, we help FinTech founders, enterprises, and regulated entities build robust, compliant, scalable applications. This guide breaks down the Top 7 FinTech compliance requirements you must meet before launching in the US.

Let’s explore these in a simple, human-friendly way — without losing the technical depth your engineering team needs.

1. KYC (Know Your Customer)

KYC is the first line of defense for fraud prevention. If your platform deals with user onboarding, wallet creation, loan applications, deposits, withdrawals, or investment accounts — you must verify your users.

What US KYC Requires

• Government-issued ID (Driver’s License, Passport)

• Selfie + Liveness checks

• Address verification (utility bill, SSN last 4 digits)

• OFAC screening

• Fraud scoring

Why It Matters

KYC protects you from identity theft, fake accounts, and high-risk users.

const axios = require("axios");

async function createKYCSession() {
  const response = await axios.post(
    "https://withpersona.com/api/v1/inquiries",
    {
      templateId: "your_template_id"
    },
    {
      headers: {
        Authorization: `Bearer ${process.env.PERSONA_SECRET}`,
      },
    }
  );
  console.log("KYC Inquiry Created:", response.data);
}

createKYCSession();

KYC is the foundation of FinTech compliance requirements in the US — everything else builds on top of it.

2. KYB (Know Your Business)

If your platform works with merchants, SaaS partners, service providers, lenders, or businesses of any kind — KYB applies.

Requirements

• Business Entity Verification (LLC, C-Corp, S-Corp)

• EIN validation

• Ultimate Beneficial Ownership (UBO) checks

• Business License Check

• OFAC & AML screening

Use Cases

• Marketplace platforms onboarding merchants

• SaaS apps onboarding payment-enabled businesses

• Loan underwriting platforms

• B2B fintech solutions

KYB ensures you don’t unintentionally onboard shell companies or high-risk entities.

3. AML (Anti-Money Laundering)

AML protects your platform from financial crimes, fraud rings, and illegal money movement.

Core AML Requirements

• Continuous monitoring of users & transactions

• Suspicious Activity Reports (SAR)

• Sanctions list screening

• Velocity checks

• Pattern detection

• Beneficiary matching

def aml_check(tx):
    if tx.amount > 10000 and tx.country not in ["US", "CA"]:
        return "high_risk_transaction"
    if tx.frequency > 20 and tx.amount < 5:
        return "structuring_pattern"
    return "pass"

AML is crucial for lending apps, crypto apps, payment processors, and neo-banks.

4. SOC 2 Type I & Type II Compliance

SOC 2 proves your platform can be trusted with sensitive financial data. It's not mandated by law, but almost every US bank, FinTech partner, and BaaS provider requires it.

SOC 2 Covers Five Trust Principles

• Security

• Availability

• Confidentiality

• Processing integrity

• Privacy

Why It Matters

If you’re integrating with:

• Banking-as-a-Service (Unit, Synctera, Treasury Prime)

• Payment processors (Stripe, Adyen)

• Wealth APIs (DriveWealth, Alpaca) You will be asked for SOC 2 at some point.

SOC 2 is a business necessity — not a technical one.

5. PCI-DSS (For Card Payments)

If your platform touches cardholder data, PCI applies. Even if you’re using Stripe, you need at least SAQ A (Self-Assessment Questionnaire A).

PCI Requirements

• No raw card storage

• Tokenized payment methods

• Secure network segmentation

• Annual vulnerability scans

• Strong encryption policies

const paymentIntent = await stripe.paymentIntents.create({
  amount: 5000,
  currency: "usd",
  payment_method: token, // Secure token from client
  confirm: true,
});

6. FFIEC Compliance (Banking Standards)

If your platform involves banking operations — lending, underwriting, deposits, or account aggregation — FFIEC guidelines apply.

FFIEC Requirements

• Multi-factor authentication

• Encryption at rest (AES-256)

• Audit logging (SIEM)

• Data lifecycle management

• Vendor risk assessments

• Transaction integrity controls

FinTechs using data aggregation tools (Plaid, MX, Finicity) fall under FFIEC expectations.

7. Data Privacy Regulations (CCPA, GLBA, State Laws)

The US does not have a universal federal privacy law — yet. Instead, you must comply with overlapping state and financial regulations.

CCPA (California) Requirements

• Right to access

• Right to delete

• Data transparency obligations

• Cookie & tracking disclosures

GLBA (Financial Services) Requirements

• Safeguards rule

• Privacy notices

• Limited data sharing

• Customer information security policy

If your app collects financial data — GLBA almost always applies.

Why US FinTech Compliance Is So Challenging

The United States has multiple regulatory bodies:

• CFPB

• OCC

• FinCEN

• Federal Reserve

• State Banking Departments

Final Words

Compliance is not the “boring part” of FinTech — it is the backbone. Whether you're launching a challenger bank or a simple personal finance tool, understanding these seven compliance pillars will help you build a safer, more scalable product.

FintegrationFS is here to help you architect, design, and deploy FinTech products that meet every compliance expectation in the United States.

FAQ

1. Do all FinTech apps in the US need KYC and AML checks?

Not all, but most do. If your app involves payments, transfers, lending, deposits, or wallet features, KYC and AML become mandatory. Even something as simple as letting users store money or withdraw it triggers compliance. These checks help you prevent fraud, fake accounts, and high-risk users from entering your platform.

2. Is SOC 2 required before launching my FinTech product?

It’s not legally required, but practically essential. Almost every banking partner, payment processor, and enterprise client in the US will ask for your SOC 2 report. If you don’t have it yet, you can still launch — but you’ll need a clear SOC 2 roadmap to win B2B deals, integrations, and investor trust.

3. Can I avoid PCI compliance if I use Stripe or Adyen?

You can reduce your PCI burden, but you cannot avoid it entirely. Using a PCI-certified provider like Stripe places most of the responsibility on their side — but you still need to follow SAQ-A requirements (e.g., secure iframe usage, proper TLS, no card storage). With Stripe-hosted fields, most startups achieve compliance within a few days.

4. What happens if my app doesn’t follow FinTech compliance rules in the US?

The consequences can be severe: blocked payouts, frozen accounts, processor shutdowns, penalties, and even federal investigations for serious violations. But the biggest risk is reputational — users won’t trust a FinTech product that cuts corners on security, identity verification, or data protection.

5. How long does it take to build a fully compliant FinTech app?

It depends on your scope. Basic compliance (KYC, AML, PCI-ready payments) can be done in 4–8 weeks with the right APIs. More advanced requirements like KYB, GLBA policies, or SOC 2 can take 3–6 months. The good news? With modern BaaS and identity platforms, you don’t have to build everything from scratch — you just integrate and configure.