Bank Negara Malaysia issues policy document on outsourcing
30 January 2019
Bank Negara Malaysia (“BNM”) issued a policy document on outsourcing to strengthen governance and risk management standards in managing outsourcing risk. The policy document, which is applicable to licensed banks, investment banks, Islamic banks, insurers, takaful operators and development financial institutions, took effect from 1 January 2019. The requirements cover primarily the expectations of boards and senior management in respect of the management of outsourcing risk, due diligence of service providers and service level agreements, protection of data confidentiality and business continuity planning.