CMF Proposes to Amend Rules for Savings and Credit Cooperatives
CMF is consulting on amendments to the general rules applied to the savings and credit cooperatives it supervises. The proposal states that cooperatives should comply with the same operational risk management standards applied to banks, support companies of banking activities, and payment card issuers. CMF has requested feedback by May 31, 2021.
Savings and credit cooperatives can perform a wide range of financial operations and services as stated in the General Law on Cooperatives. These include vista accounts, savings accounts, term deposits, and issuance of credit and payment cards, among others. Therefore, it is essential that they have a regulatory framework allowing them to develop adequate security levels in accordance with the scale and complexity of each entity's operations. According to the proposal, cooperatives are required to comply with the operational risk and cybersecurity framework that CMF has established for supervised financial institutions pursuant to the General Banking Act; the applicable frameworks include the following aspects:
- Electronic fund and information transfers
- Outsourcing of services (especially data processing services and additional safeguards in the case of cloud-based services)
- Business continuity management, including the operation of data processing sites
- Information security and cybersecurity
Along with these aspects, a regulation on reporting operational incidents to CMF also applies to the cooperatives. Moreover, any application of the regulatory framework must consider the nature, volume, and complexity of the operations of each cooperative.
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Comment Due Date: May 31, 2021
Keywords: Americas, Chile, Banking, Operational Risk, General Banking Act, Cyber Risk, Savings and Credit Cooperatives, CMF
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