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Compliance Checklist for Financial Institutions in Luxembourg
In December 2017, the European Banking Authority (EBA) issued its Final Report: Recommendations on outsourcing to cloud services providers, outlining a comprehensive approach to the outsourcing of cloud computing by financial institutions in the EU. The recommendations took effect in July 2018 and aim to ensure effective and consistent prudential regulation and supervision across the EU banking sector.
Microsoft’s Guidance for Financial Institutions
To help financial institutions in Luxembourg follow these recommendations, Microsoft published a guidance document addressing key requirements for cloud adoption. The document explains how Microsoft Azure and Microsoft 365 can be used to satisfy EBA requirements, providing confidence that financial institutions can meet their obligations under the framework.
Key Areas Covered
- Audit rights
- Notification regarding outsourcing
- Data residency
- Notification regarding subcontractors
- Business continuity
- Risk assessment and security monitoring
Microsoft’s Compliance Commitment
Microsoft’s industry-lead Financial Services Amendment provides:
- Contractual audit rights for customers
- Rights of examination for regulators
- Flexibility in deploying workloads across 36 regions worldwide
Additionally, Microsoft offers a 180-day notice period for new subcontractors and the right to terminate if the customer does not approve of their appointment. The company also provides business continuity and resolution provisions, including transition assistance through Microsoft Consulting Services.
Resources for Financial Institutions
For financial institutions in Luxembourg looking to implement cloud solutions, Microsoft offers:
- Cloud mapping for financial institutions in Europe
- Financial use cases
- Financial Compliance Program to help assess the risks of using Microsoft cloud services
Microsoft’s Cloud Offerings
Microsoft provides a suite of cloud platforms and services, including Azure and Microsoft 365, which can be used to satisfy EBA requirements. The company’s Service Trust Portal offers further information on its compliance practices, while its Cloud Checklist for Financial Institutions in Europe provides a comprehensive overview of the company’s cloud offerings and their compliance with EBA regulations.
Benefits of Compliance
By following these recommendations and using Microsoft’s cloud solutions, financial institutions in Luxembourg can ensure compliance with EBA regulations and take advantage of the benefits of cloud computing.