Regulatory Alerts2014-07-11
Guidance Note G5/2014: Outsourcing of Functions within Banks
The South African Reserve Bank issued Guidance Note G5/2014 to replace its 2008 outsourcing framework and mandate comprehensive risk management for all material business activities outsourced by banks. Banks must implement board-approved outsourcing policies, conduct rigorous due diligence and risk assessments, and maintain ongoing monitoring and contingency planning for all service provider relationships. The guidance explicitly prohibits outsourcing core governance, internal audit, and critical IT systems without prior written approval, while requiring advance notification to the regulator for other material outsourcing arrangements.
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