BOM Proposes Guidelines on Use of Cloud Services and Private Banking
The Bank of Mauritius (BoM) is consulting on revisions to the guideline for banks licensed to carry on private banking business, with the consultation period ending on September 15, 2021. The guideline sets out the regulatory and supervisory framework applicable to banks conducting private banking business. Private banking business is defined in the Banking Act 2004 as “the business of offering banking and financial services and products to high-net-worth customers including, but not limited to, an all-inclusive money-management relationship.” BoM also published a draft guideline on the use of cloud services by financial institutions, with the consultation period ending on September 08, 2021.
The guideline on the use of cloud services lays down the minimum requirements that shall be applicable to the use of cloud services provided by third parties for material services. Where specified in the guideline, these minimum requirements shall also apply to services that involve customer information. Financial institutions are expected to follow a risk-based approach in respect of cloud services. The level of governance to be applied, the information security requirements, the types of controls to be deployed, and the level of the initial and ongoing due diligence and assurance to be performed shall be commensurate with the criticality of the services. The guideline stipulates that financial institutions that use or intend to use cloud services shall have a board-approved
cloud strategy. Post finalization, a transitional period of six months shall be granted to all financial institutions to ensure compliance with the requirements of the guideline. In addition to this guideline, the financial institutions should also comply with the Guideline on Outsourcing by Financial Institutions in the event an outsourced activity avails of the use of cloud services.
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Comment Due Date: September 15, 2021(Private Banking)/September 08, 2021 (Cloud Services)
Keywords: Middle East and Africa, Mauritius, Banking, Cloud Services, Private Banking, Regtech, Cloud Computing Arrangement, Outsourcing Arrangements, SAAS, PAAS, BOM
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