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Austria’s Banking Sector: Navigating Effective Compliance Programs
In a rapidly evolving regulatory landscape, financial institutions in Austria must ensure they are equipped with robust compliance programs to meet the requirements of the European Banking Authority (EBA) and local laws.
The Role of the Financial Market Authority (FMA)
The FMA, Austria’s financial supervisory authority, plays a crucial role in overseeing the country’s banking sector. The FMA collaborates closely with the Oesterreichische Nationalbank (National Bank of Austria) and the Federal Ministry of Finance to ensure that all financial institutions have the necessary systems in place to prevent money laundering and terrorist financing.
Key Considerations for Financial Institutions
When using cloud services, financial institutions in Austria must comply with various legal and regulatory requirements. The EBA Guidelines on outsourcing arrangements, issued in February 2019, apply to EU-regulated credit institutions, investment firms, electronic money institutions, and payment institutions. These guidelines cover areas such as:
- Audit rights
- Security of data and systems
- Location of data and data processing
- Sub-outsourcing
- Contingency plans
Additionally, local regulations, including Section 25 of the Austrian Banking Act (Bankwesengesetz - BWG), may also apply to financial institutions in Austria when using cloud services.
AWS Compliance Framework
AWS is committed to offering a strong compliance framework and advanced tools and security measures that enable financial institutions to evaluate, meet, and demonstrate compliance with applicable legal and regulatory requirements. By leveraging AWS services, financial institutions can benefit from a robust set of controls, including:
- Audit rights
- Data protection
- System security
GDPR Considerations
For financial institutions in Austria using AWS services, it is essential to consider the General Data Protection Regulation (GDPR) and the Austrian Data Protection Act (Datenschutzgesetz or DSG). If customers process personal data from EU citizens, they must adhere to GDPR requirements. To support compliance with these regulations, AWS provides a range of resources and tools, including the GDPR Center.
Steps to Better Understand Compliance Needs
To ensure effective compliance programs, financial institutions in Austria using AWS services can take the following steps:
- Consider the purpose of the workload(s) under consideration and the relevant categories of data: Anticipate which legal and regulatory requirements may apply.
- Assess the materiality or criticality of the relevant workload(s): Review local requirements.
- Review the AWS Shared Responsibility Model: Map AWS responsibilities and customer responsibilities according to each AWS service that will be used.
By taking these steps, financial institutions in Austria can navigate the complex regulatory landscape and ensure they are equipped with effective compliance programs that meet the requirements of the EBA and local laws.