Regulatory Alerts2014-12-05
Guidelines on Outsourcing
The Bank of Zambia issued these guidelines to establish a comprehensive risk management framework for licensed banking and financial services entities engaging in third-party outsourcing arrangements. The regulations mandate prior written approval for all material outsourcing, prohibit the delegation of core management and compliance functions, and require legally binding agreements that guarantee regulatory access, data confidentiality, and clear termination clauses. Entities must implement rigorous due diligence, continuous monitoring, board-approved outsourcing policies, and robust business continuity and grievance redress mechanisms to ensure uninterrupted service and protect customer interests.
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