Regulatory Alerts2019-04-02
Outsourcing
The Supervisor of Banks issued this directive to establish regulatory requirements for banking corporations and merchant acquirers regarding the outsourcing of material activities. The document mandates strict corporate governance, requiring Boards of Directors to approve outsourcing policies and senior management to implement risk management plans and due-diligence checks. It further prohibits the outsourcing of core strategic and discretionary functions while enforcing comprehensive contract standards, risk assessments, and reporting obligations to mitigate operational, compliance, and reputational risks.
Share