Regulatory Alerts2008-05-09
G3/08: Outsourcing of functions within banks
The South African Reserve Bank issued Guidance Note 3/2008 to establish regulatory requirements for banks regarding the outsourcing of critical functions and activities. The directive mandates that bank management conduct thorough due diligence, maintain comprehensive service-level agreements, and ensure continuous supervisory access to information for both internal and external suppliers. Additionally, the note explicitly prohibits the outsourcing of compliance functions and generally restricts the outsourcing of internal audit functions to preserve independence and operational control.
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