Top 7 Corporate Compliance Mandates You Must Meet

Regulatory pressure is mounting. From data privacy to cybersecurity and financial reporting, businesses are facing a growing list of mandates that impact how data is stored, shared, and secured. And it’s no longer limited to large enterprises—mid-market manufacturers, logistics providers, and other supply chain partners are increasingly being pulled into scope.

Standards like GDPR, HIPAA, and SOX laid the foundation, but new and evolving rules—like PCI DSS v4.0, CPRA, and the EU’s NIS2 Directive—are raising expectations around data governance, auditability, and supply chain security. At the same time, enforcement is escalating, timelines are tightening, and cross-border obligations are becoming harder to navigate.

Compliance is no longer a static requirement, it’s a moving target. This blog explores seven of the most critical mandates shaping business operations and what your organization needs to know to stay ahead.

1) GDPR – General Data Protection Regulation (2018)

The GDPR remains the gold standard for data privacy laws worldwide, and enforcement has only grown stricter since it went into effect in 2018. In recent years, regulators have levied multi-million-euro fines against global companies, including a "1.2 billion ($1.3 billion) fine against Meta in 2023 for non-compliance related to data transfers and user consent.

One area seeing increased focus is how businesses move and store personal data across borders. The EU-U.S. Data Privacy Framework, introduced in 2023, aims to simplify transatlantic data transfers, but organizations are still expected to ensure proper safeguards are in place. That’s why secure file transfer tools, like MFT (Managed File Transfer), are more important than ever for protecting sensitive data and maintaining compliance. MFT leverages encryption, non-repudiation, data integrity checks, comprehensive transfer logging, and integration with existing security systems to securely transport business-critical data to and from companies.

2) HIPAA – Health Insurance Portability and Accountability Act (1996) and HITECH The Health Information Technology for Economic and Clinical Health (2009)

Originally enacted in 1996, HIPAA remains the cornerstone of healthcare data protection in the U.S. It sets national standards for safeguarding electronic protected health information (ePHI), whether it's stored, accessed, and transmitted. The HITECH Act of 2009 further strengthened HIPAA by promoting the secure adoption of electronic health records (EHRs) and increasing penalties for violations.

Today, with the widespread use of cloud-based systems and real-time data sharing across hospitals, providers, labs, insurers, private practices, and associated businesses, secure and traceable file transfers are more critical than ever. Regulators expect covered entities and their partners to not only secure patient data but also demonstrate clear auditability and timely breach reporting.

3) PCI DSS – Payment Card Industry Data Security Standards (Early 2000s)

Organizations that store, process, or transmit credit card data must comply with PCI DSS, a security framework developed to protect cardholder information and reduce fraud. Accordingly, PCI DSS commonly impacts retailers and eCommerce organizations. The standard includes 12 core requirements, ranging from maintaining secure networks to encrypting data and implementing strong access control measures. Among them, Requirement 3: Protect stored cardholder data, continues to be one of the most difficult to maintain over time.

PCI DSS v4.0, released in March 2022, introduces stricter expectations around encryption, multi-factor authentication, and continuous monitoring. Full enforcement of PCI DSS v4.0 began in March 2025. 

While major cloud providers like Google Cloud Platform, Amazon Web Services, and Microsoft Azure have achieved PCI DSS certification for their infrastructures, compliance responsibility still rests with every organization handling payment data. In other words, using a certified cloud platform does not make an organization automatically compliant—customers remain fully responsible for securing their applications, data, configurations, and how they leverage cloud services.

4) SOX – Sarbanes-Oxley Act (2002)

Passed in 2002 in the wake of major financial scandals like Enron and WorldCom, the Sarbanes-Oxley Act (SOX) was designed to improve corporate transparency and prevent accounting fraud. Today, every U.S. public company must comply with SOX, and that includes maintaining strict control over how financial data is stored, accessed, and shared.

While originally focused on finance and accounting, SOX now heavily impacts IT teams as well. Companies must ensure that financial records and supporting data are securely stored, tamper-proof, and fully auditable—especially as more systems move to cloud or hybrid environments. This includes demonstrating end-to-end data security, access controls, non-repudiation, and detailed audit trails.

5) FIPS 140-2 – Federal Information Processing Standard (2001)

FIPS 140-2 has long been the standard for cryptographic modules used by government agencies, companies working with the government, and regulated industries that handle sensitive data. It defines strict security requirements for cryptographic modules and prohibits the use of unapproved cryptography in federal systems. While originally designed for U.S. and Canadian government use, FIPS 140-2 has become a widely adopted benchmark across sectors like healthcare, banking, defense, finance, and manufacturing.

In 2019, FIPS 140-3 was published as its official successor, with validations becoming available starting in late 2020. It aligns with international standards (ISO/IEC 19790:2012) and expands testing rigor. The NIST Cryptographic Module Validation Program (CMVP) stopped accepting new FIPS 140-2 submissions in September 2020. While existing FIPS 140-2 validated modules generally remain valid for use, organizations are strongly encouraged to transition to FIPS 140-3-validated solutions, as the expectation is that all federal systems will rely on FIPS 140-3-validated modules by September 2026

6) CCPA / CPRA – California Consumer Privacy Act & California Privacy Rights Act (2018)

The California Consumer Privacy Act (CCPA), enacted in 2018 and effective since 2020, was the first comprehensive U.S. data privacy law to give consumers greater control over their personal information. It was significantly expanded by the California Privacy Rights Act (CPRA), which became operative on January 1, 2023, with enforcement beginning July 1, 2023. Together, these laws grant California residents enhanced rights to access, delete, and restrict the use of their data—while placing new compliance obligations on businesses that collect, process, or share it.

CPRA introduced stricter requirements around data minimization, storage limitations, and the handling of sensitive personal information such as geolocation and financial records. It also established the California Privacy Protection Agency (CPPA) to oversee and enforce the law. As more U.S. states adopt similar privacy regulations, organizations must take a proactive approach to how they manage, transfer, and secure personal data across systems.

7) NIS2 Directive (EU) – Network and Information Security Directive (2023)

The NIS2 Directive, which entered into force in January 2023, is a major update to the original NIS Directive and significantly expands the scope of cybersecurity regulation across the EU. Designed to strengthen resilience across critical sectors, NIS2 requires covered entities to implement robust cybersecurity measures, report incidents within strict, multi-stage timelines (beginning with an early warning within 24 hours), and secure their supply chain communications.

NIS2 applies not only to essential infrastructure like energy, transport, and finance, but also to sectors such as manufacturing, logistics, digital services, and suppliers to critical industries. Organizations operating in or doing business with the EU must comply by October 2024, when member states were required to transpose the directive into national law.

With heightened expectations for risk management, incident response, and supply chain security, organizations need integration solutions that provide both operational agility and strong cybersecurity controls.

Becoming Compliant Without Losing Agility 

As regulatory requirements continue to expand and evolve, compliance can no longer be treated as a siloed IT or legal initiative. It must be built into the very fabric of how organizations manage data, connect with partners, and operate across digital ecosystems.

Cleo Integration Cloud is purpose-built to help businesses stay ahead of mandates by delivering the security, visibility, control, and auditability required across EDI, API, and MFT transactions. With Cleo, organizations can streamline compliance efforts while accelerating digital transformation and scaling with confidence.

If you have any questions about how Cleo can help you comply with evolving regulatory mandates, reach out to our team at sales@cleo.com or by filling out our brief form fill. To learn more about Cleo Integration Cloud, watch our demo.