Fintech Regulators & SOC Compliance in Saudi Arabia

Early-stage fintechs entering the Saudi market face unique challenges, from securing capital to navigating complex regulatory frameworks. To build trust and operate securely, fintech startups must meet compliance standards set by key fintech regulators. These include the Saudi Central Bank (SAMA), the Capital Market Authority (CMA), and the National Cybersecurity Authority (NCA).

One crucial aspect often overlooked is cybersecurity compliance. With the rapid growth of fintech adoption, regulatory frameworks such as SAMA’s Cybersecurity Framework and SOC 2 compliance have become essential for protecting consumers, securing financial systems, and ensuring sustainable growth.

This blog offers a comprehensive guide to the regulatory and cybersecurity requirements fintechs must meet to thrive in Saudi Arabia, with insights from COGNNA, a leading cybersecurity compliance company.

Fintech Regulators in Saudi Arabia: What Startups Need to Know

Entering the Saudi Arabian fintech market involves meeting several regulatory requirements aimed at ensuring compliance and operational security. Governing bodies such as SAMA, the Capital Market Authority (CMA), and the National Cybersecurity Authority (NCA) oversee fintech operations, enforcing standards that prioritize security.

Fintechs must acquire necessary licenses, including:

• SAMA license for banking and payment services
• CMA license for capital market and securities activities
• MCI registration for commercial licensing
• Alignment with National Cybersecurity Authority (NCA) mandate.

The CMA regulation for fintech ensures financial stability, while SAMA cybersecurity compliance ensures data privacy and resilience against cyber risks. Combined, these regulations form the backbone of Saudi Arabia’s fintech sector.

But regulatory licensing is only one part of the equation. Cybersecurity must be at the core of every fintech’s operating model.

Cybersecurity Controls in the SAMA Regulatory Sandbox

The SAMA Regulatory Sandbox allows fintechs to test solutions in a monitored and controlled environment. However, entry requires strict cybersecurity readiness, including:

• Technology & Solution Architecture: Detailed high-level and low-level designs showcasing network segregation and data protection.
• Cybersecurity Risk Management: Comprehensive risk assessments and management plans aligned with the SAMA Cybersecurity Framework.
• Security Monitoring & Incident Management: Implementation of SOC tools and Security Information and Event Management (SIEM) tools for real-time monitoring and incident response, and compliance with SOC 2 standards.

These standards ensure that all fintechs participating in the sandbox meet the highest levels of cybersecurity, protecting their business and customer data from potential threats.

COGNNA: Your Cybersecurity Compliance Partner in Saudi Arabia

At COGNNA, we specialize in helping fintechs meet and exceed Saudi fintech regulators’ requirements. As a trusted cybersecurity company, our managed SOC solutions help fintechs:

• Identify and mitigate threats: From network breaches to endpoint vulnerabilities, we provide advanced threat detection to safeguard your fintech.
• Protect customer data: We offer comprehensive data protection services, including secure cloud hosting, local data storage, and compliance with Saudi data privacy laws.‍
• Achieve SAMA Cybersecurity Compliance: with risk management, monitoring, and incident response aligned to Saudi frameworks.‍
• Meet CMA Regulation for Fintech: ensuring capital market activities operate securely.‍
• Ensure SOC 2 Compliance: embedding globally recognized controls for security, availability, and confidentiality.‍
• Support NCA Frameworks: aligning with national cybersecurity standards for resilience and risk mitigation.
  

COGNNA’s Domain Controls for Compliance

• Asset Management: COGNNA’s platform helps fintechs maintain an accurate inventory of their information and technology assets. Our solutions automate the process of asset classification, labeling, and monitoring, ensuring full compliance with NCA, SAMA, and CMA regulations.
• Cybersecurity Event Management: We provide a unified platform for continuous event log collection and real-time monitoring across all critical assets, enabling fintechs to comply with strict logging requirements set by SAMA and NCA.
• Incident and Threat Management: COGNNA’s Threat Management platform offers rapid detection, response, and reporting of cybersecurity incidents. We align with the incident management requirements of SAMA, NCA, and CMA, providing real-time intelligence and breach indicators for effective incident handling.
• Vulnerability Management: COGNNA proactively identifies, classifies, and prioritizes vulnerabilities based on their criticality. Our AI-driven solution helps fintechs comply with the vulnerability management frameworks of SAMA, NCA, and CMA, ensuring prompt patching and heightened cyber resilience.

Key Takeaways for Fintechs

Fintech Regulators’ Standards and Cybersecurity Go Hand in Hand

Fintechs must align with both the licensing requirements and the cybersecurity regulations enforced by bodies like SAMA, NCA, and CMA.

Proactive Cybersecurity is Essential

Regulatory bodies demand stringent security measures to prevent data breaches and financial fraud. Cybersecurity should be embedded into your fintech’s core operations, not added later.

COGNNA’s Expertise in Fintech Security

With COGNNA’s managed SOC services, fintechs can simplify compliance, stay ahead of cyber threats, and achieve peace of mind knowing their operations are secure.

Conclusion

While getting your fintech up and running can be challenging, you can efficiently navigate Saudi Arabia’s regulatory fintech compliance standards and laws with the right partners.

With COGNNA’s agentic SOC platform, our team identifies and mitigates malicious and suspicious activities across different attack vectors, including networks, endpoints, and cloud systems, enabling you to always stay ahead of cyber threats and meet SAMA, CMA, NCA, and SOC 2 compliance requirements.

Contact us today to discover how we can help your fintech achieve full cybersecurity compliance and thrive in the Saudi market.

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