The Federal Financial Institutions Examination Council (FFIEC) has announced the August 31, 2025, sunset of the FFIEC Cybersecurity Assessment Tool (CAT). To help financial institutions transition, the FFIEC will highlight new and updated government and industry resources during a banker webinar this Fall.
Statement of Applicability: The contents of this FIL apply to all FDIC-supervised financial institutions.
Highlights:
- The CAT, introduced in June 2015, was designed as a voluntary tool to assist financial institutions in identifying risks and evaluating cybersecurity preparedness.
- While the CAT remains a valuable reference, new and enhanced government and industry resources offer updated methods for managing cybersecurity risks effectively.
- The FFIEC has decided not to revise the CAT to include new frameworks, such as the National Institute of Standards and Technology (NIST) Cybersecurity Framework 2.0 or the Cybersecurity and Infrastructure Security Agency’s (CISA) Cybersecurity Performance Goals.
- The FFIEC will remove the CAT from its website on August 31, 2025.
- FDIC-supervised financial institutions are encouraged to explore alternative, industry-developed resources for conducting self-assessments.
- These resources align with a whole-of-government approach to enhance security and resilience across organizations of various sizes and sectors.
- The FFIEC will provide an overview of these resources during a banker webinar this Fall.
As financial institutions continue to embrace digital transformation, ensuring robust regulatory compliance is more critical than ever. The Federal Financial Institutions Examination Council (FFIEC) provides essential guidance to safeguard the security, stability, and soundness of financial institutions. For organizations navigating the complexities of compliance, partnering with experienced service providers like NexInfo can simplify the process and strengthen risk management.
What is FFIEC Compliance?
FFIEC compliance entails adhering to the standards and regulations set by the FFIEC to protect financial institutions and their customers. These guidelines emphasize effective risk management, cybersecurity preparedness, and operational resilience. Compliance is mandatory for financial institutions under the supervision of FFIEC member agencies, including banks, credit unions, and other regulated entities.
Purpose of the FFIEC
The FFIEC was established to:
- Foster consistency in regulatory standards across financial institutions.
- Strengthen risk management practices.
- Enhance the cybersecurity resilience of the financial sector.
- Protect consumers and maintain the safety of the financial system.
Key Components of FFIEC Compliance
- Risk Management: Identifying, assessing, and mitigating operational risks, including vendor management and internal controls.
- Cybersecurity: Leveraging tools and frameworks to evaluate cybersecurity maturity and address vulnerabilities.
- Audits: Conducting regular internal and external audits to ensure adherence to FFIEC guidelines.
- Consumer Protection: Complying with regulations to safeguard fair lending practices and protect consumers.
- Reporting: Maintaining accurate documentation and providing timely reports to regulatory authorities.
How NexInfo Can Help With FFIEC Compliance
NexInfo specializes in helping financial institutions achieve and maintain compliance with FFIEC guidelines. With a team of industry experts, NexInfo provides end-to-end services, including:
- Gap Analysis: Identifying areas where your institution may fall short of FFIEC compliance requirements.
- Risk & Compliance Assessments: Performing detailed evaluations to ensure adherence to regulations.
- Cybersecurity Services: Implementing and managing robust cybersecurity frameworks that align with FFIEC standards.
- Audit Preparation: Assisting in the preparation for FFIEC compliance audits and regulatory examinations.
- Ongoing Support: Offering continuous monitoring and support to address emerging risks and evolving regulations.
By partnering with NexInfo, financial institutions can streamline compliance efforts, mitigate risks, and focus on core operations.
FFIEC Cybersecurity Guidelines
The FFIEC outlines detailed cybersecurity guidelines to help financial institutions build resilience against cyber threats. Key recommendations include:
- Adopting a comprehensive cybersecurity framework.
- Conducting regular vulnerability assessments.
- Establishing and testing an incident response plan.
- Training employees on cybersecurity best practices.
- Continuously monitoring and enhancing cybersecurity measures.
How to Achieve FFIEC Compliance
- Understand Requirements: Familiarize your team with FFIEC guidelines, including the soon-to-be-retired CAT and other key resources.
- Conduct Risk Assessments: Evaluate operational, technological, and third-party risks.
- Develop Policies and Procedures: Align your internal policies with FFIEC standards.
- Partner With Experts: Leverage compliance consultants like NexInfo for guidance and support.
- Perform Regular Audits: Continuously ensure that institutional practices align with regulatory expectations.
Why Choose NexInfo for FFIEC Compliance?
NexInfo offers:
- Expertise: In-depth knowledge of FFIEC regulations and financial institution operations.
- Custom Solutions: Tailored services to address your institution’s unique challenges.
- Proactive Approach: Continuous monitoring and enhancement of compliance processes.
- Proven Track Record: A history of successful compliance implementations for diverse financial institutions.
FFIEC Compliance Checklist for Banks and Credit Unions
- Conduct a comprehensive risk assessment.
- Transition from the CAT to updated industry tools.
- Review and update policies and procedures.
- Train employees on cybersecurity and compliance best practices.
- Prepare for periodic audits and regulatory examinations.
- Monitor third-party vendors for regulatory adherence.
- Document all processes for transparency and accountability.
Partnering With NexInfo for FFIEC Compliance
Navigating FFIEC compliance can feel overwhelming, but NexInfo provides the tools, expertise, and guidance to ensure your institution meets regulatory expectations confidently. NexInfo’s proven methods and strategic insights help financial institutions remain compliant, resilient, and secure in an evolving regulatory environment.
Ready to streamline your compliance process? Contact NexInfo today to learn more about our comprehensive compliance solutions.
