Financial Crime World

Compliance Risks in Financial Services in Slovakia

Slovakia’s financial institutions face numerous compliance risks when using cloud services, highlighting the need for a strong regulatory framework and advanced tools to mitigate these risks.

Regulatory Framework

The National Bank of Slovakia (NBS) is the primary regulator of financial institutions in Slovakia, tasked with protecting consumer rights and ensuring the sound functioning of the financial market. The NBS has confirmed its intention to apply the European Banking Authority’s Guidelines on outsourcing arrangements issued in February 2019, which provide guidance on contractual and operational areas such as:

  • Audit rights
  • Data security
  • Contingency plans

Local Regulations

Local regulations, including the NBS Methodological Instruction No. 6/2004 on the utilization of outsourcing by banks, also apply to financial institutions using cloud services. Regulations are constantly evolving, requiring financial institutions to stay proactive in responding to new rules and guidelines.

AWS Compliance Framework

To address these compliance risks, AWS offers a strong compliance framework and advanced tools and security measures that enable customers to evaluate, meet, and demonstrate compliance with applicable legal and regulatory requirements.

Key Considerations for Financial Institutions

Financial institutions in Slovakia can use cloud services provided they comply with relevant regulations, including the EBA Guidelines and local laws. Key considerations for financial institutions using AWS include:

  • Data privacy and protection requirements, including the General Data Protection Regulation (GDPR)
  • Mapping AWS responsibilities with customer responsibilities
  • Assessing materiality or criticality of workloads
  • Reviewing the AWS Shared Responsibility Model

Understanding Compliance Needs

To better understand their compliance needs, financial institutions should consider the purpose of their workloads and assess the materiality or criticality. They can also review the AWS Shared Responsibility Model and map AWS responsibilities with customer responsibilities.

Getting Started with AWS Security and Compliance

For more information on how AWS services can enable security and compliance needs, financial institutions can contact their account representative or visit the AWS website.