DataBreaches.Net

Menu
  • About
  • Breach Notification Laws
  • Privacy Policy
  • Transparency Report
Menu

North Dakota Expands Data Security Requirements and Issues New Licensing Requirements for Brokers

Posted on April 26, 2025 by Dissent

A.J. S. Dhaliwal, Mehul N. Madia, and Beineng Zhang of SheppardMullin write:

On April 11, North Dakota enacted HB 1127, overhauling its regulatory framework for financial institutions and nonbank financial service providers. The law amends multiple chapters of the North Dakota Century Code and creates a new data security mandate for financial corporations—a category that includes non-depository entities regulated by the Department of Financial Institutions (DFI). It also expands the licensing requirement for brokers to include “alternative financing products,” potentially impacting a broad array of fintech providers.

The law introduces sweeping data protection obligations for nonbank financial corporations through new requirements created in Chapter 13-01.2. Specifically, covered entities must:

  • Implement an information security program. This includes administrative, technical, and physical safeguards, based on a written risk assessment.
  • Designate a qualified individual. Each financial corporation must designate a qualified individual responsible for overseeing the security program and report annually to its board or a senior officer.
  • Conduct regular testing. Annual penetration tests and biannual vulnerability assessments are mandatory unless continuous monitoring is in place.
  • Secure consumer data. Encryption of data in transit and at rest is required unless a compensating control is approved. Multifactor authentication is also mandatory.
  • Notify regulators of breaches. A data breach involving 500 or more consumers must be reported to the Commissioner within 45 days.

Read about the new requirements at The National Law Review.

Related posts:

  • Updates to the Gramm-Leach-Bliley Act Cybersecurity Requirements
  • North Dakota Enacts Financial Data Security and Data Breach Notification Requirements
Category: Financial SectorLegislationOf NoteState/Local

Post navigation

← Oregon DEQ won’t say if ransomware group took employee data in cyberattack
SK Telecom vows to take full responsibility for damage from recent data leak →

Now more than ever

"Stand with Ukraine:" above raised hands. The illustration is in blue and yellow, the colors of Ukraine's flag.

Search

Browse by Categories

Recent Posts

  • Alert: Scattered Spider has added North American airline and transportation organizations to their target list
  • Northern Light Health patients affected by security incident at Compumedics; 10 healthcare entities affected
  • Privacy commissioner reviewing reported Ontario Health atHome data breach
  • CMS warns Medicare providers of fraud scheme
  • Ex-student charged with wave of cyber attacks on Sydney uni
  • Detaining Hackers Before the Crime? Tamil Nadu’s Supreme Court Approves Preventive Custody for Cyber Offenders
  • Potential Cyberattack Scrambles Columbia University Computer Systems
  • 222,000 customer records allegedly from Manhattan Parking Group leaked
  • Breaches have consequences (sometimes) (1)
  • Kansas City Man Pleads Guilty for Hacking a Non-Profit

No, You Can’t Buy a Post or an Interview

This site does not accept sponsored posts or link-back arrangements. Inquiries about either are ignored.

And despite what some trolls may try to claim: DataBreaches has never accepted even one dime to interview or report on anyone. Nor will DataBreaches ever pay anyone for data or to interview them.

Want to Get Our RSS Feed?

Grab it here:

https://databreaches.net/feed/

RSS Recent Posts on PogoWasRight.org

  • Germany Wants Apple, Google to Remove DeepSeek From Their App Stores
  • Supreme Court upholds Texas law requiring age verification on porn sites
  • Justices nix Medicaid ‘right’ to choose doctor, defunding Planned Parenthood in South Carolina
  • European Commission publishes its plan to enable more effective law enforcement access to data
  • Sacred Secrets: The Biblical Case for Privacy and Data Protection
  • Microsoft’s Departing Privacy Chief Calls for Regulator Outreach
  • Nestle USA Settles Suit Over Job-Application Medical Questions

Have a News Tip?

Email: Tips[at]DataBreaches.net

Signal: +1 516-776-7756

Contact Me

Email: info[at]databreaches.net

Mastodon: Infosec.Exchange/@PogoWasRight

Signal: +1 516-776-7756

DMCA Concern: dmca[at]databreaches.net
© 2009 – 2025 DataBreaches.net and DataBreaches LLC. All rights reserved.