Regulatory Alerts2022-06-13
Bank of Israel Circular C-06-2715 on Cloud Computing
The Bank of Israel amended Proper Conduct of Banking Business Directive no. 362 to establish comprehensive regulatory requirements for banking corporations using cloud-computing services. The directive mandates the creation of a Board-approved policy, classifies cloud services as a specific outsourcing case, and imposes unique governance, risk management, and security obligations. Key changes include removing the ban on using cloud computing for core systems while requiring strict due diligence, contractual safeguards, and business continuity planning for material cloud activities.
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