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Data Privacy Compliance for Financial Institutions in Poland: A Regulatory Guide

The Polish Financial Supervision Authority (Komisja Nadzoru Finansowego, KNF) has outlined specific guidelines and requirements for financial institutions in Poland to ensure data privacy compliance when moving business functions and data to the cloud.

Overview of Data Privacy Regulations in Poland

As the financial regulatory authority in Poland, the KNF is responsible for overseeing the country’s financial market, including banking, capital markets, insurance, pension schemes, and electronic money institutions. To comply with data privacy regulations, financial institutions in Poland must be aware of several requirements and guidelines when using cloud services.

Banking Act of 1997

The Banking Act of 1997 does not directly regulate cloud services but sets out legal requirements for outsourcing banking operations, including how personal information can be processed. Cloud services could be subject to Banking Act provisions if the outsourced services are of key significance for the bank or if outsourcing involves giving the service provider access to sensitive data that is subject to banking secrecy requirements.

Recommendations and Guidelines from KNF

The KNF has issued several recommendations and guidelines to ensure prudent IT security management by banks, including Recommendation D: Management of Information Technology and ICT Environment Security at Banks. This document outlines 22 recommendations for best security practices and provides comparable guidelines for insurance companies, investment firms, and general pension companies.

Personal Data Protection Act of 1997

Additionally, the use of cloud services by financial institutions in Poland must comply with the country’s Personal Data Protection Act of 1997, which was amended in late 2018 to align with the General Data Protection Regulation (GDPR).

Microsoft Compliance Checklist

Microsoft has published a compliance checklist for financial institutions in Poland considering outsourcing business functions to the cloud. The checklist helps organizations conduct due-diligence assessments of Microsoft business cloud services and provides an overview of the regulatory landscape.

Requirements for Data Privacy Compliance

To ensure data privacy compliance, financial institutions in Poland must address requirements of:

  • The Banking Act of 1997
  • The KNF Announcement regarding the use of data processing services in the cloud
  • The GDPR-aligned amendment to the Personal Data Protection Act of 1997

Mandatory Terms in Cloud Service Provider Contracts

Financial institutions in Poland must also ensure that their contracts with cloud service providers include mandatory terms, such as those outlined in Part 2 of the Microsoft checklist. The KNF requires banks to obtain approval before entering into contracts with cloud service providers based outside the European Economic Area (EEA) or outsourcing operations outside the EEA.

Additional Resources

To learn more about data privacy compliance for financial institutions in Poland, refer to the following resources:

Recommendation D: Management of Information Technology and ICT Environment Security at Banks

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This document outlines 22 recommendations for best security practices and provides comparable guidelines for insurance companies, investment firms, and general pension companies.