Financial Crime World

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Financial Institution Security Measures in Japan Under Scrutiny

The Japanese Financial Services Agency (FSA) has outlined strict guidelines for financial institutions using cloud services, highlighting the need for robust security measures to ensure compliance with regulatory requirements.

Compliance Guidelines

According to sources close to the matter, the FSA requires financial institutions to follow the Security Guidelines on Computer Systems for Banking and Related Financial Institutions published by the Center for Financial Industry Information Systems (FISC). This framework covers various aspects, including:

  • Governance
  • Risk management
  • Monitoring and oversight

These guidelines are aimed at ensuring the confidentiality, integrity, and availability of sensitive financial data. The FSA has warned that failure to comply with regulatory requirements could result in severe penalties.

AWS Response to Regulatory Changes

In response to the changing regulatory landscape, Amazon Web Services (AWS) is working closely with its financial institution customers to ensure compliance with all relevant regulations and guidelines. AWS encourages its customers to seek professional advice on their compliance obligations and provides advanced tools and security measures to help them evaluate, meet, and demonstrate compliance.

Key Considerations for Japanese Financial Institutions

For Japanese financial institutions using AWS, key data privacy and protection considerations include:

  • Japan’s Private Information Protection Law
  • The EU’s General Data Protection Regulation (GDPR)

AWS has published a whitepaper outlining the necessary steps for customers to take when processing personal data of European Union citizens.

Steps to Better Understand Compliance Needs

Financial institutions can take several steps to better understand their compliance needs, including:

  • Conducting a risk-based analysis of relevant workloads
  • Reviewing the AWS Shared Responsibility Model
  • Accessing AWS Artifact to assess control responsibilities

Contact Information for More Information

For more information on how AWS services can enable security and compliance needs, financial institutions are encouraged to contact their account representative or AWS directly.