of January 8, 2020 No. 1
About risk management when outsourcing
1. Approve the Instruction about risk management when outsourcing it (is applied).
Chairman of the board
Approved by the Resolution of Board of National Bank of the Republic of Belarus of January 8, 2020 No. 1
1. This Instruction establishes requirements to the organization by bank, "Development Bank of the Republic of Belarus" open joint stock company, non-bank credit and financial organization (further, unless otherwise specified, - bank) risk managements when outsourcing.
2. For the purposes of this Instruction outsourcing is understood as transfer of third party by bank or to person performing activities as the individual entrepreneur (further - the outsourcing organization), for accomplishment completely or partially separate functions, business processes, types of activity constituting their works, services (further - functions), in case of simultaneous observance of the following conditions:
contractual relations of bank and outsourcing organization have long nature and (or) the conclusion of contracts between them is performed on regular basis;
the function of bank transferred for accomplishment by the outsourcing organization is connected with the banking activity performed by it;
the bank transfers to the outsourcing organization the customer information of bank and (or) other data which are bank or other secret protected by the law, or provides access to such information or data otherwise.
The bank has the right to determine in the local legal acts other conditions and procedure for their application for reference of functions to the functions transferred to outsourcing in addition to the conditions specified in part one of this Item.
2-1. Transfer by bank of the functions connected with receipt of services of international payment systems, the international telecommunication systems of information transfer and (or) making payments does not belong to outsourcing.
2-2. If transfer by bank of the functions including connected with servicing (completion, modification, maintenance) of licensed software does not belong to outsourcing according to Items 2 and 2-1 of this Instruction, the bank estimates the risks connected with such transfer including operational risk, including legal risk, cyberrisk and risk of use of services of the third party, risk of loss of goodwill of bank (reputation risk) and concentration risk according to local legal acts of bank taking into account requirements of the regulatory legal acts of National Bank regulating questions of corporate management system, risk management and internal control.
3. Determination of functions which the bank transfers (plans to transfer) on outsourcing, is performed by bank independently taking into account requirements of parts two and third this Item.
Functions which transfer on accomplishment of the outsourcing organization can entail threat of banking system stability of the Republic of Belarus and depositor protection and other creditors and (or) violation by bank of licensed requirements, stipulated in Clause 94 Bank codes of the Republic of Belarus and also it is capable to exert negative impact on efficiency of functions of internal control and control in the sphere of prevention of legalization of income gained in the criminal way, financings of terrorist activities and financing of distribution of weapons of mass destruction for the purpose of this Instruction are recognized crucial functions and are performed by bank independently.
Treat crucial functions:
corporate management by bank, including risk management in bank, internal control, the organization of system of compensations and remunerations, internal audit of bank, except for attraction of third party for performance of works on implementation of internal audit in bank (outsourcing of internal audit) on separate transactions or activities (business lines, business processes) in case of adoption of such decision by governing body of bank;
activities in the sphere of prevention of legalization of income gained in the criminal way, financings of terrorist activities and financing of distribution of weapons of mass destruction, except as specified, when such activities according to legal acts can be carried out by the third parties;
and (or) lead decision making about implementation by bank of transactions and other transactions which results can significantly influence the level of the risks accepted by bank to creation of the provision menacing to safe functioning of bank and (or) interests of his investors and other creditors of bank;
financial accounting and creation of the accounting and (or) financial reporting;
banking activity, including implementation of transactions according to bank accounts of clients of bank, except as specified, when transfer on outsourcing is performed to bank, the non-bank credit and financial organization having special permission (license) for implementation of the corresponding banking activity, to "Development Bank of the Republic of Belarus" open joint stock company.
The bank excludes possibility of transfer of function on outsourcing to residents of the foreign states entering the list of offshore zones – the states (territories) in which the preferential tax regime is effective and (or) disclosure and provision of information on financial transactions, No. 353 approved by the Presidential decree of the Republic of Belarus of May 25, 2006 is not provided.
4. In case of transfer of function on outsourcing the bank provides observance by bank and outsourcing organization of the following main conditions (principles):
confidentiality of information;
safety of information transfer;
personal data protection and the data which are bank secrecy;
disclosure in the consent of the client to information transfer (in writing, in the form of the electronic document or in other electronic form) structure of information which will be transferred and also the list of persons to which such information will be provided, specifying is more whole than use of information and the period during which information can be transferred to the third parties. In the consent of the client to information transfer the client's right to refusal of consent, withdrawal of earlier provided consent in full or partially is provided.
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