Regulatory Alerts2022-05-05
Prudential Standard for the Outsourcing of Services for Institutions Licensed to Conduct Business Under the Banking Act
The Eastern Caribbean Central Bank issued this Prudential Standard to mandate comprehensive risk management and governance frameworks for licensed financial institutions outsourcing material activities. The requirements enforce board oversight, rigorous third-party due diligence, and prior regulatory approval for significant contracts while guaranteeing uninterrupted service delivery and continuous supervisory access. Institutions must establish formal outsourcing policies, maintain robust contingency plans, and periodically reassess materiality to ensure ongoing regulatory compliance.
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