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Regulatory Supervision, Audit, and Inspection: A Guide for Financial Institutions in Chile

In Chile, financial institutions are required to ensure that their cloud service providers have permanent access to all records, data, and information being processed, held, or generated. This is a critical aspect of regulatory compliance and can be achieved through regular visits or remote monitoring.

Data Localization: A Key Consideration

When outsourcing services, data, technological services, or applications, financial institutions must ensure that such data is located in specific processing sites, with foreign processing sites requiring defined and known jurisdictions. This requirement is outlined in RAN 20-7.

  • AWS provides its customers with the option to choose between multiple regions where their content and servers are located.
  • Additionally, through AWS Artifact, customers can access information about the exact city within each region where data centers are located.
  • Financial institutions that require analyzing data latency and residency requirements may consider using AWS Local Zones or AWS Outposts.

Technical and Operational Requirements

Financial institutions must ensure that they meet the technical and operational requirements outlined in RAN 20-7, including:

  • General management elements
  • Data processing sites and technological infrastructure
  • Systemic contingencies

To support these requirements, AWS maintains a Business Continuity Plan (BCP) that outlines its process for recovering from outages. This plan is designed to recover and reconstitute AWS services using a three-phasied approach:

  1. Activation and Notification Phase
  2. Recovery Phase
  3. Reconstitution Phase

Financial institutions can leverage AWS to enable faster disaster recovery of their critical IT systems without incurring the infrastructure expense of a second physical site. The AWS Cloud supports various disaster recovery architectures, including:

  • “Pilot light” environments that are ready to scale up at a moment’s notice
  • “Hot standby” environments that enable rapid failover

Conclusion

In conclusion, financial institutions in Chile must ensure that they comply with regulatory requirements related to cloud service providers, data localization, and business continuity management. AWS provides its customers with the necessary tools and services to support these requirements, including Enterprise Agreements, data center location information, and Business Continuity Plans.

By leveraging these resources, financial institutions can ensure compliance with Chilean regulations while also benefiting from the scalability and reliability of cloud computing.