Financial Crime World

Data Privacy in Financial Services: A Regulatory Overview for Estonia’s Institutions

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As financial institutions in Estonia navigate the rapidly evolving regulatory landscape, they must ensure compliance with legal and regulatory requirements to maintain trust with their customers. Amazon Web Services (AWS) is committed to providing a strong compliance framework and advanced tools to help financial institutions meet these demands.

Financial Regulator: Finantsinspektsioon

Estonia’s Financial Supervision Authority, Finantsinspektsioon, oversees credit institutions, securities markets, and other financial entities to ensure their ability to meet customer obligations and prevent systemic risks. The authority’s primary objective is to promote the stability and integrity of Estonia’s financial sector.

Regulations for Financial Institutions

Financial institutions in Estonia using AWS services must comply with various legal and regulatory requirements. The European Banking Authority Guidelines on Outsourcing Arrangements, issued in 2019, provide guidance on audit rights, data security, and contingency plans when using cloud services. Additionally, local regulations, such as the Advisory Guidelines of the Financial Supervision Authority on Outsourcing Requirements for Supervised Entities and the Creditors and Credit Intermediaries Act, apply to financial institutions.

Key Considerations

Financial institutions in Estonia should consider applicable privacy requirements, including:

  • The General Data Protection Regulation (GDPR)
  • The Personal Data Protection Act (PDPA)

If processing personal data of EU citizens, institutions must visit AWS’ GDPR Center for guidance. To better understand compliance needs, institutions can:

  • Identify the purpose of the workload and relevant categories of data
  • Assess materiality or criticality in light of local requirements
  • Review the AWS Shared Responsibility Model and map responsibilities according to each service used

AWS Resources

For further information on regulatory compliance, financial institutions can access the following resources:

  • 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

AWS is committed to supporting Estonia’s financial institutions with a strong compliance framework and advanced tools. By understanding regulatory requirements, financial institutions can ensure data privacy and protection while maintaining trust with their customers.