Regulatory Alerts2021-07-15
Outsourcing Regulation for Banks
The Central Bank of the United Arab Emirates issued Circular No. 14/2021 to establish minimum standards for banks managing risks associated with outsourcing arrangements. The regulation mandates comprehensive governance frameworks, maintenance of an outsourcing register, and strict data protection protocols, including the requirement that the Master System of Record be stored within the UAE. It further imposes specific constraints on cross-border outsourcing, prohibiting data sharing with jurisdictions lacking equivalent safeguards and ensuring continuous Central Bank access to critical information.
Share