Belgium’s Banking Regulators Set Out Supervisory Expectations for Banks in Cloud Computing Era

Brussels, Belgium - Regulators Outline Guidelines for Banks to Ensure Transparency and Accountability in Cloud Services

The National Bank of Belgium (NBB) and the Financial Services and Markets Authority (FSMA) have outlined their supervisory expectations for financial institutions in Belgium regarding cloud computing. The regulators emphasized that banks must adhere to specific guidelines and regulations when outsourcing business functions to cloud service providers, warning that failure to comply could lead to reputational damage and financial losses.

Key Expectations from Regulators

• Adequate Risk Management Processes: Banks must identify potential vulnerabilities associated with cloud computing and take steps to address them.
• Transparency and Accountability: Banks are required to disclose their use of cloud services to customers and provide clear information about the benefits and risks associated with these services.

Industry Response: Microsoft Welcomes Guidance

Microsoft, a leading provider of cloud computing services, has welcomed the NBB and FSMA’s guidance on supervisory expectations for banks in Belgium. The company has published a compliance checklist for financial institutions in Belgium that outlines key issues to be addressed when outsourcing business functions to the cloud.

Collaboration and Cooperation Emphasized

The NBB and FSMA’s guidance is part of a broader effort to promote transparency and accountability in Belgium’s banking sector. Regulators have emphasized the importance of collaboration and cooperation between banks, cloud service providers, and other stakeholders to ensure that the benefits of cloud computing are realized while minimizing its risks.

Additional Support from Microsoft

Microsoft has announced a new program providing access to expertise, training, and resources to help banks navigate the complex regulatory landscape and ensure compliance with supervisory expectations. This initiative aims to support financial institutions in Belgium looking to implement cloud-based solutions.

Learn More

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