Regulatory Alerts2020-11-23
Outsourcing Risk Guidance Note for Banks
This guidance note establishes regulatory requirements for banks regarding the outsourcing of activities to third-party service providers. It mandates that senior management retains ultimate responsibility for outsourced functions and prohibits the outsourcing of core management duties or licensed activities like deposit acceptance without equivalent authorization. Banks must implement comprehensive risk management policies, maintain formal contracts with specific audit and access rights, and notify supervisors of material outsourcing arrangements.
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