Financial Crime World

AWS Complies with Israel’s Financial Regulations: A Guide for Financial Institutions

In the dynamic world of financial services, staying ahead of regulatory compliance is crucial. AWS, a leading cloud services provider, has announced its commitment to helping financial institutions in Israel meet the country’s diverse regulatory requirements when using AWS services.

Israel’s Financial Regulatory Landscape

The financial services sector in Israel is not governed by a single regulator but rather a group of agencies responsible for specific aspects:

  1. The Bank of Israel (BoI): The central bank that oversees banking activities and payment and clearing systems.
  2. The Capital Market, Insurance and Savings Authority (CMISA): Supervises financial services in the insurance, pension, and provident funds markets.
  3. The Israel Securities Authority (ISA): Regulates public companies listed on the Israeli Stock Exchange and manages mutual funds, safeguarding public investments in securities.
  4. The Privacy Protection Authority: Deals with data protection and security.
  5. The Israel National Cyber Directorate:Focuses on cyber defense in the civilian sphere.

Compliance with Regulations for Financial Institutions

AWS encourages financial institutions in Israel to become familiar with regulations that apply to them, such as:

  • BoI’s Proper Conduct of Banking Business Directives for banking corporations.
  • CMISA’s Circular on Cyber Risk Management in Institutional Entities for insurance companies and management companies of provident and pension funds.

These documents outline specific requirements and guidance regarding outsourcing arrangements, cybersecurity, and business continuity planning.

Cloud Services and Regulatory Compliance

Financial institutions in Israel can use AWS services but must comply with applicable legal and regulatory requirements. Compliance considerations may include:

  • Data protection and data privacy requirements under Israeli law,
  • Regulations relating to outsourcing, and
  • Cyber risks management.

Risk Assessments and Shared Responsibility Model

Financial institutions should perform risk assessments and review the AWS Shared Responsibility Model to understand the responsibilities and requirements associated with each AWS service. They can also use AWS Artifact to:

  • Access AWS’ audit reports, and
  • Conduct assessments of control responsibilities.

AWS encourages financial institutions to consult legal and regulatory advisors to ensure they are meeting all requirements.

Conclusion

AWS’ commitment to helping financial institutions in Israel comply with regulatory requirements is a significant step forward in ensuring the financial sector leverages the benefits of cloud computing while maintaining essential governance and compliance standards.

For more information, financial institutions should:

  1. Review the suggested resources and,
  2. Consult their legal and regulatory advisors.