Financial Crime World

Hungary’s Financial Institutions Face Tightening Security Measures: A Regulatory Overview

Financial institutions in Hungary are navigating the complex landscape of cloud computing while ensuring compliance with legal and regulatory requirements. In this article, we will explore the tightening security measures imposed by regulatory bodies and provide an overview of the key considerations for financial institutions using cloud services.

Regulatory Environment

The Magyar Nemzeti Bank (Central Bank of Hungary) supervises the country’s financial markets, emphasizing the importance of preventing money laundering and terrorism financing. Financial institutions in Hungary must prioritize these measures to ensure compliance with legal and regulatory requirements.

Cloud Computing Regulations

Financial institutions using cloud services in Hungary are subject to various regulations, including:

  • European Banking Authority Guidelines on outsourcing arrangements (2019): These guidelines provide guidance on contractual and operational areas such as audit rights, data security, location of data, sub-outsourcing, and contingency plans.
  • Recommendation No. 4/2019 of the Hungarian National Bank on the usage of community and public cloud computing services: This recommendation outlines local regulations, guidelines, and laws applicable to financial institutions in Hungary.

AWS Compliance

AWS is committed to helping financial institutions in Hungary meet regulatory requirements. The company offers advanced tools and security measures that customers can use to evaluate, meet, and demonstrate compliance with applicable legal and regulatory requirements.

Key Considerations for Financial Institutions in Hungary

When using AWS, financial institutions in Hungary should consider the following key factors:

  • Compliance with European Banking Authority Guidelines on outsourcing arrangements
  • Meeting local regulations, guidelines, and laws
  • Data privacy and protection requirements, including the General Data Protection Regulation (GDPR)

Compliance Approach

To better understand compliance needs, financial institutions can:

  • Assess the purpose of their workload
  • Evaluate materiality or criticality
  • Review the AWS Shared Responsibility Model
  • Map responsibilities according to each service used

For further guidance, customers can contact their account representative or refer to additional resources provided by AWS, including:

  • AWS 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

Conclusion

The regulatory landscape is constantly evolving, requiring financial institutions in Hungary to stay proactive in responding to new rules and guidelines. By working closely with regulatory bodies and cloud service providers like AWS, they can ensure continued compliance while staying ahead of the curve in a rapidly changing environment.

Remember, it’s essential for financial institutions in Hungary to prioritize security measures and comply with legal and regulatory requirements to maintain trust and stability in the financial system.