The Compliance Checklist Every Fintech Needs to Hit Growth Milestones

Written By Darius Griffin

Navigating compliance requirements can feel overwhelming, especially for early-stage fintech companies focused on growth. But a solid compliance foundation is essential—not only to avoid fines but to set the stage for expansion, investor trust, and strong partnerships. Here’s a checklist of the key compliance steps every fintech startup should prioritize to stay on track as they scale.

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1. Establish KYC (Know Your Customer) and AML (Anti-Money Laundering) Practices

To prevent fraud and secure regulatory approval, fintech companies need robust KYC and AML processes from day one. These frameworks help verify customer identities and monitor transactions, ensuring compliance with both domestic and international standards.

  • Basic KYC Compliance: Implement customer identification protocols to verify users before onboarding.

  • AML Policies: Set up transaction monitoring systems to detect and report suspicious activity, a critical requirement for regulatory bodies.

Nazca Tip: Use automated KYC/AML tools within Nazca’s platform to streamline verification processes, saving time and reducing manual errors.

2. Prepare for SOC 2 Compliance

SOC 2 compliance —it’s a trust signal that can open doors to partnerships with banks, payment processors, and other financial institutions. Start preparing early, as the process involves building secure data practices, establishing internal controls, and passing audits.

  • Audit Preparation: Develop policies around data security, availability, and confidentiality.

  • Continuous Monitoring: Implement a system for real-time security updates and internal monitoring to ensure compliance over time.

Nazca Tip: Nazca’s SOC 2 compliance templates can help you document and implement controls, making the process smoother and audit-ready from the start.

3. Obtain Necessary Licensing (e.g., Money Transmitter License)

Fintechs handling payments or money transfers often need a Money Transmitter License (MTL) to operate legally in various states. Licensing requirements differ by state, and securing an MTL can be a lengthy, complex process—so getting a head start is critical.

  • State Licensing: Begin by identifying states where your startup will operate and start preparing documentation early.

  • Track Renewals: Once licensed, maintain a renewal schedule to avoid costly lapses in compliance.

Nazca Tip: Track your licensing status and renewal deadlines directly within Nazca’s platform to stay ahead of requirements in multiple states.

4. Prioritize GDPR and Data Privacy Compliance

If your fintech handles personal data from customers in the EU, GDPR compliance is essential. This means safeguarding personal information, gaining explicit consent from users, and enabling them to access or delete their data as required by law.

  • Data Handling Policies: Establish protocols for how data is collected, stored, and shared.

  • Customer Rights Management: Implement a system to let users access or delete their personal data on demand.

Nazca Tip: Leverage Nazca’s GDPR compliance resources to build data privacy practices that protect customer information and avoid hefty penalties.

5. Implement Risk and Fraud Monitoring

Beyond AML, startups should have real-time risk monitoring to detect unusual activity and prevent financial crimes.

  • Fraud Detection Tools: Invest in automated tools that alert you to potential fraud, minimizing risks to both your business and customers.

  • Regular Risk Assessments: Perform periodic assessments to identify vulnerabilities in your risk management processes.

Nazca Tip: With Nazca’s AI-powered compliance monitoring, you get real-time alerts for potential compliance gaps or risks, helping you stay one step ahead.

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Compliance as a Growth Foundation

Staying on top of compliance might seem daunting, but a strong foundation enables you to scale confidently. By following these key steps, your fintech can build credibility, streamline operations, and unlock growth potential with partners, investors, and customers.

With Nazca’s compliance management tools, you can easily track, automate, and maintain compliance across these critical areas—all while focusing on growth.

Ready to simplify compliance? Explore Nazca to see how we can support your compliance journey from startup to scale.

Darius Griffin
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