Regulatory Alerts2024-04-19
Added · Updated
Draft Proposed Outsourcing Standards under the Financial Institutions and Markets Act, 2021
The Namibia Financial Institutions Supervisory Authority (NAMFISA) has issued draft proposed standards requiring all financial institutions and intermediaries to comply with a comprehensive outsourcing framework under the Financial Institutions and Markets Act, 2021. The standards prohibit the outsourcing of principal business functions, mandate board and senior management oversight with a triennially reviewed policy, and establish seven core principles governing due diligence, contractual obligations, IT security, confidentiality, concentration risks, data access, and termination. Institutions must notify NAMFISA in writing within thirty business days of entering into or amending outsourcing agreements, while existing arrangements must be brought into compliance with the new regulatory requirements.