By way of background, recommendation 4/2019. (IV. 1.) of the National Bank of Hungary (MNB) gives a detailed, practical guidance to entities in the financial intermediary system regarding risk management and uniform interpretation of legal regulations. The Recommendation helps focusing on the main requirements and also gives some practical guidelines when implementing the applicable laws.
Iván Bartal, Oppenheim’s head of IP/IT, has been quoted in Global Data Review’s article as saying that the “detailed, practical guidance” will help the financial services sector make well-founded decisions on using cloud services by determining certain elements of the decision-making process as well as raising awareness of data protection. Based on the applicable laws, the entities have greater responsibility than the cloud service providers, therefore it is necessary to have detailed and adequate contractual provisions in place, moreover to ensure the entities the right to audit regarding the service provider, including the right to perform on-site inspections. By exercising this right, the entity can make sure the service provider fulfils its legal obligations.”
Iván also added that compliance with the regulations could function as a benefit rather than a burden: “Complying with the recommendation as well as the relevant applicable laws in order to use cloud services could optimize the entity’s costs and help them operate more efficiently. Financial entities generate unbelievable amount of data, but cloud computing could prevent difficulties by providing possibilities to access unlimited storage.” He said that while the recommendations are not legally binding, companies that take them on board will have “an easier time” demonstrating compliance with the underlying legal regulations. “Conversely, companies failing to take account of the recommendations are likely to have to explain to the MNB why they disregarded certain steps and how they went about meeting the relevant objectives.”
The full article is available here: https://globaldatareview.com/article/1193128/hungarian-central-bank-issues-cloud-computing-recommendations