DORA Compliance: How Financial Institutions Can Prepare for 2025

As financial services face increasing digitalization, ensuring operational resilience has never been more critical. The Digital Operational Resilience Act (DORA), taking effect on January 17, 2025, mandates financial institutions in the European Union (EU) to adopt comprehensive measures to manage ICT risks.

In this guide, we'll cover:

• What is DORA?
• DORA compliance domains
• Impact on fintech, crypto, and AML compliance
• DORA compliance services we offer
• Why work with Demire Inc on DORA compliance

By following these guidelines, financial institutions can avoid penalties, strengthen ICT security, and ensure DORA compliance.

What is DORA?

The Digital Operational Resilience Act (Regulation (EU) 2022/2554), also known as DORA, is a regulatory framework established by the EU to ensure that financial institutions can withstand, respond to, and recover from all types of ICT-related disruptions. The act is aimed at banks, investment firms, credit institutions, and non-traditional financial entities like crypto-asset service providers and crowdfunding platforms.

The regulation requires entities to implement policies for detecting, containing, and recovering from IT incidents that may affect financial stability. Financial institutions must be DORA-compliant by January 17, 2025, or face possible regulatory action.

DORA Compliance Domains

To achieve DORA compliance, financial institutions must address several key domains outlined in the regulation. These include:

1. ICT Risk Management and Governance

Institutions are required to develop a strong ICT risk management framework. This includes establishing processes to identify, manage, and mitigate risks related to IT systems. DORA mandates that top executives play a crucial role in setting digital resilience strategies and governance.

2. Incident Response and Reporting

DORA requires financial institutions to have systems in place for incident detection, monitoring, management, and reporting. Firms must log and classify ICT incidents, ensuring they can be reported to both internal management and external authorities.

3. Resilience Testing

Organizations are expected to regularly conduct resilience testing to identify weaknesses in their ICT infrastructure. This proactive measure helps ensure the system's ability to withstand potential cyber-attacks or other operational disruptions.

4. Third-Party Risk Management

As financial institutions often rely on third-party service providers, DORA mandates robust third-party risk management processes. Financial entities must ensure that external vendors comply with similar ICT standards to minimize potential risks.

DORA's Impact on Fintech, Crypto, and AML Compliance

Fintech companies, crypto-asset service providers, and entities involved in Anti-Money Laundering (AML) compliance will face additional scrutiny under DORA. This regulation introduces stringent requirements that go beyond traditional financial regulations, making digital resilience a crucial aspect of compliance for these sectors.

For Fintech and Crypto Sectors:

• DORA directly impacts AML compliance by ensuring that the systems used to monitor suspicious transactions are resilient and operationally secure. Failure to comply with DORA could lead to serious disruptions in AML processes and failure to report suspicious activities to the authorities.

Services for Your DORA Compliance

At Demire Inc, we offer a full range of DORA compliance services to help financial institutions navigate these complex requirements. Our services include:

1. ICT Risk Framework Development

We assist in creating a robust ICT risk framework that aligns with DORA's stringent requirements. This includes identifying risks, managing them effectively, and ensuring executive oversight.

2. Resilience Testing

We offer essential and advanced resilience testing services to ensure your IT infrastructure can withstand disruptions and recover swiftly.

3. Third-Party Risk Management

Our team evaluates and mitigates risks from third-party providers, ensuring your entire network is DORA-compliant.

4. Incident Response Systems

We implement systems to detect, manage, and report ICT incidents effectively. This ensures your firm meets DORA’s reporting requirements.

Work with DORA Compliance Experts

Demire Inc has over 13 years of experience in legal and financial consulting, working with traditional financial institutions as well as fintech and crypto companies. Our team of experts is well-versed in DORA compliance and can help you navigate its complex requirements with ease.

Why Choose Us for Your DORA Compliance Needs?

Let’s Work Together to Ensure Your DORA Compliance