The Compliance Wave in Latin America: Why Regional Tech Companies Are Pursuing SOC 2 and ISO 27001 and What U.S. Buyers Should Know

I’ve lived in Latin America my whole life, first in Brazil and more recently in Panama, and I’ve spent the past five years working for U.S.-based IT audit firms. This journey has given me a perspective to both the North and Latin American sides of the compliance conversation. In Latin America, the frameworks weren't designed for a local regulatory context, the talent pipeline is still developing, and the demand for compliance is growing faster than almost anyone realizes. Conversely in the U.S., SOC 2 audits are conducted all the time to evaluate the cybersecurity readiness of companies.

This post looks at what's happening in Latin American compliance right now, why it matters to U.S. businesses, and what both sides need to understand to work together effectively. Whether you’re a U.S.-based company looking to buy from a Latin American-based vendor or vice versa, here’s what you need to know:

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The "compliance export" is real

Something that most English-language compliance conversations miss entirely is that fintechs, SaaS companies, and technology firms across Latin America are already pursuing SOC 2 and ISO 27001, and the pace of this is accelerating. In most cases, they're not doing it because a local regulator told them to. They're doing it because their customers in the U.S. and Europe showed up with security questionnaires and said: "no SOC 2, no deal."

This is what I call the "compliance export", where U.S. and European compliance standards are flowing into Latin American markets through commercial relationships, not regulatory mandates. When a series B fintech in São Paulo wants to sell to enterprise buyers in New York, they need a SOC 2 report. When a SaaS platform in Bogotá wants to partner with a European bank, ISO 27001 becomes a prerequisite.

The result is a rapidly growing compliance market in a region that, until recently, had very limited compliance infrastructure.

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Where Latin American compliance stands today

As the landscape in Latin America is evolving quickly, it's important to understand where things stand right now.

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The demand side is booming

Latin America's tech ecosystem has matured significantly over the past few years. Brazil, Mexico, Colombia, Argentina, and Chile have all developed vibrant startup cultures and scaled up ecosystems. Fintech in particular has exploded, driven by large unbanked populations, mobile-first adoption, and significant venture capital investment.

As these companies grow and pursue U.S. and European enterprise customers, compliance is no longer optional. SOC 2, ISO 27001, and PCI DSS are becoming table stakes for cross-border business.

The nearshore outsourcing boom is amplifying this trend. As more U.S. companies hire development teams and technical partners in Latin America, they need those partners to demonstrate security controls that align with their own compliance requirements. Third-party risk management is driving compliance adoption from the outside in.

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Invest in compliance talent, and choose the right auditor

The compliance talent gap in Latin America is real, but it's closing. Companies should invest in building internal expertise, by hiring professionals with framework knowledge, pursuing relevant certifications, and developing the operational maturity needed to maintain a program.

When it comes to the audit itself, choosing the right partner matters just as much. Look for an audit firm with experience working across geographies, deep framework expertise, and a platform that makes the examination process efficient, regardless of where your company is headquartered.

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Local regulatory frameworks are evolving

Several Latin America countries have also developed or strengthened their own data protection and cybersecurity regulations:

• Brazil's LGPD (Lei Geral de Proteção de Dados) is one of the most comprehensive data protection laws in the region, with significant similarities to GDPR. 
• Mexico's Federal Law on Protection of Personal Data has established baseline privacy requirements. 
• Colombia's data protection framework, under Ley 1581, continues to mature. 
• Panama and Chile have both been updating their data protection legislation as well.

These local regulations create an additional compliance layer for companies operating in the region, while also building familiarity with compliance concepts that makes international framework adoption somewhat easier.

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What U.S. companies should understand about Latin American compliance regulations

If you're a U.S. company evaluating vendors, partners, or acquisitions in Latin America, here are some key considerations:

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Don't assume the absence of SOC 2 means the absence of security

Many companies in the region have strong technical security practices without having gone through a formal SOC 2 audit. The frameworks may be unfamiliar, but the security fundamentals are often solid, especially in mature fintech and enterprise software companies.

The question isn't "do they have a SOC 2 report?" but rather "do they have the security controls in place, and can we help them formalize that into a framework our customers and auditors will recognize?"

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Framework selection matters more in cross-border contexts

For Latin American companies selling globally, the framework choice has real strategic implications. SOC 2 is essential for the U.S. market, since enterprise buyers will expect it, and it's increasingly a prerequisite for vendor approval. ISO 27001 carries more weight internationally, particularly in European and Asia-Pacific markets. For companies that need both, multi-framework compliance mapping displaying shared controls across SOC 2 and ISO 27001 simultaneously can save significant time and resources.

The good news is that these frameworks overlap substantially. A well-designed control library can serve as the foundation for both, reducing the total compliance burden.

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What Latin American companies should understand about pursuing SOC 2

If you're a technology company in Latin America considering SOC 2 or ISO 27001, here's practical guidance based on what I've seen work:

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Start with your customers' requirements, not a framework list

Don't pursue compliance frameworks in the abstract. Talk to your target customers and find out what they actually require. If your primary market is U.S. enterprise buyers, SOC 2 is almost certainly the priority. If you're selling globally, you may need ISO 27001 as well.

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Invest in compliance talent, or partner with people who have it

The compliance talent gap in Latin America is real, but it's closing. Look for professionals with international audit experience, invest in certifications for your existing team, and consider working with compliance platforms that can bridge the expertise gap.

At Thoropass, we work with companies globally and understand that compliance maturity varies by region. Our platform and audit team are designed to meet companies where they are, whether that's their first SOC 2 or their fifth.

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Build once, map to many

If you know you'll need multiple frameworks, design your compliance program with multi-framework mapping in mind from the start. Create a unified control library. Standardize your evidence collection. Map each control to every applicable framework. This approach saves enormous time and money compared to building separate compliance programs for each framework.

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Don't wait for compliance to become a blocker

The most expensive time to pursue SOC 2 is when a deal is on the line and the buyer is waiting for your report. Start the process before compliance becomes the bottleneck in your sales cycle.

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The opportunity ahead

Latin America's compliance market is at an inflection point. The companies and professionals who build compliance expertise now will have a significant competitive advantage as the market matures.

For U.S. companies, understanding Latin American compliance dynamics isn't just about managing vendor risk, it's about unlocking partnerships with a rapidly growing tech ecosystem that brings technical talent, market access, and innovation.

For Latin American companies, compliance isn't just a requirement to access U.S. and European markets, it's a trust signal that differentiates you from competitors who haven't made the investment.

At Thoropass, we're committed to making compliance accessible for companies regardless of where they're based. Because great security doesn't have a nationality, and neither should great compliance.

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