The world has changed drastically in the past few decades. Not only that, but a series of economic downturns, specifically those in 2008 and 2020, have impacted industries all over the country. In response, federal and state governments have passed new financial compliances laws and regulations. These guidelines not only impact financial institutions and law firms, but also trickle down and impact the process servers that do business with them.
Financial compliance requires a business to follow federal and state laws, rules, and regulations that govern financial institutions. Some examples of these laws and regulations include the Fair and Accurate Credit Transactions Act (FACTA), the Bank Secrecy Act (BSA), and the Anti-Money Laundering (AML) law. The purpose of these rules is to create a fair and transparent financial market that protects consumers, investors, and society as a whole from financial crime or market manipulation. While the laws may target banks and financial institutions, their guidelines trickle down and must also be followed by law firms and those who work with the law firms (process servers).
Why is financial compliance needed for process servers?
Financial compliance regulations require law firms to sign service-level requirements and have vendor management programs in place. These rules must also be followed by 3rd party vendors that work with the law firms, including process servers. In the world of process service, financial compliance laws mainly involve protecting personal data and reducing security risks.
To make sure that your process server is following financial compliance, you can check to see if they have a financial service compliant accreditation with the National Association of Professional Process Servers (NAPPS).