Karachi January 18 2023: State Bank of Pakistan issued regulations related to Outsourcing to Cloud Service Providers in order to enable Banks, Digital Banks, Microfinance Banks, DFIs, EMI, PSOs and PSPs to offer innovative services to clients.
The circular states, "In order to enable SBP’s Regulated Entities – REs (Banks, Digital Banks – DBs, Microfinance Banks – MFBs, Development Finance Institutions – DFIs, Electronic Money Institutions – EMIs, Payment System Operators – PSOs and Payment System Providers – PSPs) to design and offer innovative products and services by embracing the cloud technology and effectively manage the risks arising out of these arrangements, SBP has developed ‘Framework on Outsourcing to Cloud Service Providers’ (enclosed). The framework sets out minimum requirements for SBP’s REs to outsource their material and non-material workloads to CSPs through a risk-based approach in a safe and secure manner. Henceforth, all cloud outsourcing arrangements shall be governed under this framework."
It adds, "REs may outsource their workloads to CSPs in the manner as prescribed in Section E of attached framework. Further, REs shall ensure that all existing cloud outsourcing arrangements are compliant with the requirements of the framework by December 31, 2023."