Study: Firms say biggest compliance risk is US data rules

More than one in three Irish financial organisations, or 36%, say the softening of US data privacy and cybersecurity rules represents the greatest compliance risk to their business, according to a survey from the Compliance Institute.

A further one in four, or 23%, cite US President Donald Trump’s tariffs and trade restrictions as the most significant threat to their operations, it said.

The findings were contained in the latest survey from the Compliance Institute, whch is Ireland’s professional body for compliance professionals.

Around 110 compliance experts, working predominantly in the financial services sector, were surveyed as part of the research.

The study also found that 15% of the respondents point to the rollback of environmental, social and governance regulations as their top concern.

The survey was aimed at understanding the key regulatory risks facing Irish financial institutions, particularly in light of recent developments in US policy.

The Chief Executive of the Compliance Institute said the survey results “highlight a clear concern among Irish compliance professionals”.

Michael Kavanagh said US policy under Mr Trump is “becoming a significant issue when it comes to regulatory planning”.

He said the findings in relation to the softening of US data privacy and cybersecurity rules “reflects ongoing uncertainty over the future of the EU–US data privacy framework and the risk of greater fragmentation of US privacy laws at a state level, both of which could make managing data across the Atlantic more challenging”.

Mr Kavanagh added: “The introduction of the 15% tariffs on EU goods and growing rhetoric around financial and tech decoupling, Irish firms with US exposure are facing a much more unpredictable trade environment – one that could impact operations, supply chains and financial flows.

“In simple terms, it’s very difficult to put new policies or procedures in place if there’s a potential for the rules to change on a monthly, if not weekly basis.”

The Compliance Institute survey also found that 18% of financial organisations believe none of the US policy changes currently pose a compliance threat to their business operations.

Mr Kavanagh said that findings may reflect the fact that a cohort of financial service businesses in Ireland have no dealings with the US.