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Cambodia’s Financial Institutions Must Comply with Stringent Regulatory Requirements

In Cambodia, financial institutions using cloud services must ensure compliance with applicable legal and regulatory requirements to avoid potential penalties and reputational damage.

Background

According to the National Bank of Cambodia (NBC), the country’s central bank, local and foreign banks, as well as microfinance institutions and leasing companies, are subject to its supervision. The NBC has issued guidelines for financial institutions planning to use cloud services, including the Technology Risk Management Guidelines, which cover contractual and operational areas such as due diligence, risk management, and monitoring.

Implementation

Financial institutions in Cambodia are encouraged to implement these guidelines on a voluntary basis within two years from their issuance. However, customers may need to obtain appropriate advice on their compliance with all regulatory and legal requirements that are relevant to their business.

Regulatory Requirements

The NBC’s regulations apply to financial institutions using cloud services such as Amazon Web Services (AWS), which is committed to providing its customers with a strong compliance framework and advanced tools and security measures to evaluate, meet, and demonstrate compliance with applicable legal and regulatory requirements.

  • Consider data privacy and protection requirements when using AWS cloud services.
  • Review AWS’ Shared Responsibility Model and access audit reports through AWS Artifact.

Compliance Resources

To better understand their compliance needs, financial institutions can take steps such as:

  • Considering the purpose of their workload and relevant categories of data
  • Assessing the criticality of their workload
  • Procuring necessary approvals
  • Reviewing AWS’ User Guide for Financial Institutions in Cambodia
  • Accessing the AWS Compliance Quick Reference Guide, Navigating GDPR Compliance on AWS, and Using AWS in the Context of Common Privacy and Data Protection Considerations.

Conclusion

In conclusion, financial institutions in Cambodia using cloud services must ensure compliance with applicable legal and regulatory requirements to avoid potential penalties and reputational damage. By understanding these requirements and taking steps to comply, financial institutions can ensure a secure and compliant use of cloud services.