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Financial Services Regulations in Argentina: A Guide to Outsourcing IT Services
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Introduction
Argentina’s financial services regulations provide a comprehensive framework for financial institutions (FIs) outsourcing information technology (IT) services. The BCRA Regulation governs FIs’ outsourcing activities, outlining various aspects that must be considered.
Key Points of the BCRA Regulation
- Outsourcing by Financial Institutions: The BCRA Regulation allows FIs to outsource IT services entirely or partially to third-party service providers, including cloud services.
- Notification Requirement: FIs must notify the Superintendencia de Entidades Financieras y Cambiarias del Banco Central (SEFyC) at least 60 calendar days prior to commencing outsourced activities.
Regulator’s Supervision and Oversight Powers
The BCRA has published regulatory guidance, including Normative Interpretations, which clarify the scope of the regulation and the review of international certifications and independent audit reports as sufficient for satisfying audit and access rights with respect to CSPs providing services to regulated entities.
AWS Enterprise Agreement: A Customized Solution for Financial Institutions
AWS offers an enterprise agreement that provides a customized solution for FIs, allowing them to manage their IT services while complying with regulatory requirements. This solution is particularly beneficial for financial institutions as it enables them to:
Four Distinct Scenarios of IT Outsourcing
The BCRA Regulation outlines four distinct IT outsourcing scenarios depending on the nature and types of data being handled, and the category of outsourced services involved.
Implications for Financial Institutions
Financial institutions must ensure they comply with the BCRA Regulation, including notification requirements and minimum technical and operational requirements for outsourced services. Additionally, FIs should assess materiality or criticality of workloads in light of scenarios outlined in the BCRA Regulation and their operational risk management policies.
AWS Solution: Effective IT Service Management
AWS provides a customized solution for FIs, allowing them to manage IT services while complying with regulatory requirements. This solution enables financial institutions to:
Conclusion
The guide provides valuable insights into the BCRA Regulation’s requirements for financial institutions outsourcing IT services. By understanding these regulations and implementing appropriate measures, FIs can ensure compliance and effectively manage their IT services.
Recommendations
- Obtain appropriate advice on compliance with all regulatory and legal requirements relevant to their business.
- Ensure they comply with the BCRA Regulation, including notification requirements and minimum technical and operational requirements for outsourced services.
- Assess materiality or criticality of workloads in light of scenarios outlined in the BCRA Regulation and their operational risk management policies.