Regulatory Alerts2004-01-01
Banks Act Circular 14/2004: Outsourcing of Functions Within Banks
The Registrar of Banks issued Circular 14/2004 to establish guidelines for banks regarding the outsourcing of critical functions that impact risk profiles or supervisory processes. The document mandates comprehensive service-level agreements, rigorous supplier monitoring, contingency planning, and unrestricted supervisory access to information for both external and internal group outsourcing. It explicitly prohibits outsourcing compliance functions and generally opposes outsourcing internal audit functions, while requiring banks to report proposed and existing arrangements to the regulator by specific deadlines.
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