Banking & Finance

BNM issues Policy Document on Outsourcing

Date: 28 December 2018; Type: Legal News; Source: Bernama

KUALA LUMPUR, Dec 28 (Bernama) - Bank Negara Malaysia (BNM) today issued a policy document on outsourcing aimed at strengthening governance and risk management standards in managing outsourcing risk. In a statement today, BNM said the policy document is effective from Jan 1, 2019 and will be applicable to licensed banks, investment banks, Islamic banks, insurers, takaful operators and development financial institutions. The requirements primarily cover expectations on 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.

“A feedback statement has been issued concurrently with the policy document to articulate the bank’s views on several areas of feedback,” it said.

Financial institutions should have strong oversight and control over outsourcing arrangements, as would have been the case if they were performed in-house, it noted.

“The board and senior management shall be accountable for ensuring effective oversight and governance of outsourcing arrangements, supported by a robust outsourcing risk management framework to manage outsourcing risks and ensure compliance with relevant laws, regulations and prudential requirements that relate to outsourced activities.

“In particular, the board and senior management must have regard to the financial institution’s ability to fulfil its obligations to customers, including the ability of customers to obtain redress, and ensure consistency with its recovery and resolution planning," it said.

The policy also states that the board must also approve an outsourcing plan, detailing the financial institution’s planned outsourcing arrangements for the following financial year, before the plan is submitted to the central bank.

“In assessing the plan, the board must have in place mechanisms to obtain assurance from senior management that the requirements set out in this policy document are duly met,” it added.

MY Bernama

Asean LIP works with Bernama to bring you the latest Malaysian legal news. Bernama is the national news agency of Malaysia. You shall not reproduce the above/ attached materials in whole or in part without the prior written consent of the Publishers and/or Bernama. Neither the Publishers nor Bernama will be liable for any loss, injury, claim, liability, or damage caused directly, indirectly or incidentally to errors in or omissions from the above/ attached materials. The Publishers and Bernama also disclaim and exclude all liabilities in respect of anything done or omitted to be done in reliance upon the whole or any part of the above/attached materials. The access to, and the use of, Asean LIP and contents herein are subject to the Terms of Use.

Get ASEAN LAW ALERT

Legal updates by e-mail. It's Free.

INDUSTRY UPDATES

Complaint Boxes for Iskandar Puteri Schools to tackle Crimes

ISKANDAR PUTERI, Jan 14 (Bernama) - The Iskandar Puteri District police have suggested for the district’s schools to provide boxes for information or complaints to tackle various crimes involving students.

Read More

INDUSTRY UPDATES

Tax Amnesty Programme aims to reduce People's Burden, says IRB

KUALA LUMPUR, Jan 14 (Bernama) - The Special Voluntary Disclosure Programme (SVDP) is a clear indication of the government's desire to reduce the burden of the people through taxation, Inland Revenue Board (IRB) chief executive officer Datuk Seri Sabin Samitah said.

Read More

INDUSTRY UPDATES

Tengku Abdullah to be proclaimed as New Sultan of Pahang on January 15

PEKAN, Jan 12 (Bernama) - The Regent of Pahang Tengku Abdullah Sultan Ahmad Shah will be proclaimed as the sixth Sultan of Pahang, succeeding Sultan Ahmad Shah, on Jan 15.

Read More

INDUSTRY UPDATES

Judges, Judicial Officers receive DoJ Training not due to High Profile Cases - CJ

PUTRAJAYA, Jan 11 (Bernama) - Chief Justice Tan Sri Richard Malanjum explained that the training of Malaysian judges and judicial officers by the United States Department of Justice (DOJ) was not due to the high profile money laundering cases, such as the ones involving former Prime Minister Datuk Seri Najib Tun Razak.

Read More

INDUSTRY UPDATES

Adapt Technology and Work from anywhere, CJ tells Lawyers

PUTRAJAYA, Jan 11 (Bernama) - With the tagline ‘Now Anywhere Can Work’, lawyers can now deal with their cases from anywhere through the use of technology introduced by the judiciary in order to have an efficient court system, said Chief Justice Tan Sri Richard Malanjum today.

Read More

INDUSTRY UPDATES

Malaysian Bar will continue to voice Concerns over use of Oppressive Laws - President

PUTRAJAYA, Jan 11 (Bernama) - The Malaysian Bar will continue to voice its concerns on the continued use of oppressive laws, said its president George Varughese.

Read More

INDUSTRY UPDATES

Full Force of the Law to be applied to Wrongdoers, says AG

PUTRAJAYA, Jan 11 (Bernama) - Attorney-General Tommy Thomas said today the full force of the law would be applied to wrongdoers.

Read More

INDUSTRY UPDATES

Matrade appoints Halim Mohamad as Chairman

KUALA LUMPUR, Jan 11 (Bernama) - Malaysia External Trade Development Corporation (Matrade) has appointed Tan Sri Halim Mohammad as its seventh chairman, effective Jan 1, 2019.

Read More

INDUSTRY UPDATES

Rizal granted Permission to transfer Corruption Case to High Court

KUALA LUMPUR, Jan 9 (Bernama) - The case of former special officer to the former Prime Minister, Datuk Rizal Mansor, who faces four corruption charges involving a solar hybrid system project for rural schools in Sarawak will be heard in the High Court.

Read More

INDUSTRY UPDATES

Kamis Samin is new Chief Administrator of Parliament

KUALA LUMPUR, Jan 7 (Bernama) - Prime Minister’s Department Ceremonial and International Conference Secretariat Division secretary Datuk Kamis Samin has been appointed as the new Chief Administrator of Parliament, effective today.

Read More

INDUSTRY UPDATES

Ku Nan's Case to be tried in High Court

KUALA LUMPUR, Jan 7 (Bernama) - The case of former Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor, who is facing two charges of receiving bribes totalling RM3 million, over the approval of an application by a company to raise the development related ratio in Jalan Semarak Kuala Lumpur, will be tried in the High Court.

Read More

INDUSTRY UPDATES

No Bail for former Goldman Sachs Banker Roger Ng

KUALA LUMPUR, Jan 7 (Bernama) - Former Goldman Sachs banker Roger Ng will remain in prison after the Sessions Court here today dismissed his application to be released on bail pending his extradition proceedings to the United States to face three criminal charges relating to 1Malaysia Development Berhad (1MDB).

Read More

INDUSTRY UPDATES

SC appoints Ong as Executive Director effective January 4

KUALA LUMPUR, Jan 7 (Bernama) - The Securities Commission Malaysia (SC) has appointed Ong Liang Heng as executive director in the chairman's office, effective Jan 4.

Read More

INDUSTRY UPDATES

Tourism Tax Revenue to be distributed to State Governments in Q1 - Lim

KUALA LUMPUR, Jan 7 (Bernama) - The federal government will distribute the 50 per cent tourism tax revenue to state governments in the first quarter (Q1) of 2019, says Finance Minister Lim Guan Eng.

Read More

INDUSTRY UPDATES

12 Ministries get New Secretaries-General

KUALA LUMPUR, Jan 4 (Bernama) - Twelve ministries are getting new secretaries-general, said the Chief Secretary to the Government, Datuk Seri Dr Ismail Bakar.

Read More