Closing NYDFS Identity Compliance Gaps with Microsoft Entra

The audit came back with red ink. Gaps in identity controls. Incomplete logs. A ticking clock under the New York Department of Financial Services (NYDFS) Cybersecurity Regulation.

Microsoft Entra is built to close those gaps. It unifies identity management, access control, and compliance reporting into a single cloud-first platform. Under NYDFS 23 NYCRR 500, covered financial institutions must secure nonpublic information, enforce multi-factor authentication, control privileged accounts, and provide detailed audit trails. Entra delivers these capabilities natively.

Entra’s Conditional Access enforces MFA and adaptive policies based on risk signals. Privileged Identity Management (PIM) locks down admin accounts, grants time-bound access, and keeps full records. Audit logs stream directly into SIEM systems, giving compliance teams instant visibility for incident response and regulatory reporting.

NYDFS requires periodic risk assessments. With Entra Identity Governance, you can run access reviews at scale, track remediation, and prove compliance with minimal manual effort. Automated provisioning and deprovisioning protect sensitive systems from orphaned accounts, satisfying Section 500.07’s requirements for access control.

For organizations already using Microsoft 365 or Azure, Entra integrates without re-engineering your environment. For hybrid or multi-cloud setups, its connectors manage identities across AWS, GCP, and on-premises infrastructure. The end result: one set of security policies enforced everywhere, one source of truth for auditors.

The NYDFS Cybersecurity Regulation is not optional. Regulators can fine, revoke licenses, and publish violations. Deploying Microsoft Entra reduces the time, cost, and human error involved in meeting the regulation’s identity-related mandates. It turns identity from a weak point into a hard perimeter.

See how Entra’s controls align with NYDFS requirements. Go to hoop.dev and test it live in minutes.