Financial Crime World

Hungary’s Banking Regulators Set Strict Rules for Cloud Adoption

The Central Bank of Hungary (Magyar Nemzeti Bank or MNB) has implemented strict regulations for financial institutions in the country to ensure compliance with legal and regulatory requirements when using cloud services.

Regulatory Requirements for Financial Institutions in Hungary

Financial institutions in Hungary may be subject to a number of different laws and guidelines when they use cloud services. These include:

  • The European Banking Authority Guidelines on outsourcing arrangements, issued in February 2019
  • Recommendation No. 4/2019 (IV. 1.) of the Hungarian National Bank on the usage of community and public cloud computing services

AWS Offers Strong Compliance Framework

Amazon Web Services (AWS) has committed to offering financial institutions in Hungary a strong compliance framework and advanced tools and security measures to help them evaluate, meet, and demonstrate compliance with applicable legal and regulatory requirements.

“We are working to help our customers proactively respond to new rules and guidelines,” said AWS spokesperson. “We encourage our financial institution customers to obtain appropriate advice on their compliance with all relevant regulatory and legal requirements.”

Key Considerations for Financial Institutions in Hungary Using AWS

Financial institutions in Hungary using AWS services should consider the following key considerations:

  • Purpose of the workload(s): Determine the purpose of the workload(s) under consideration and the relevant categories of data.
  • Materiality or criticality: Review the materiality or criticality of the relevant workload(s) in light of local requirements.
  • AWS Shared Responsibility Model: Review the AWS Shared Responsibility Model and map AWS responsibilities and customer responsibilities according to each AWS service used.

Resources for Navigating Regulatory Compliance on AWS

AWS offers a range of resources to help financial institutions navigate regulatory compliance, including:

  • The Compliance Quick Reference Guide
  • Implications of the Code of Conduct for Cloud Infrastructure Service Providers in Europe
  • Navigating GDPR Compliance on AWS
  • Using AWS in the Context of Common Privacy and Data Protection Considerations

By following these guidelines and leveraging AWS’ strong compliance framework, financial institutions in Hungary can ensure they are meeting regulatory requirements and maintaining a secure and compliant cloud infrastructure.