Podcast
Questions and Answers
What is a primary consideration when assessing service providers located outside Malaysia?
What is a primary consideration when assessing service providers located outside Malaysia?
Which measure is essential for a service provider to ensure data security for an EMI?
Which measure is essential for a service provider to ensure data security for an EMI?
When a service provider serves multiple clients, what must be ensured regarding the EMI's information?
When a service provider serves multiple clients, what must be ensured regarding the EMI's information?
What should an EMI do in response to a customer information breach reported by a service provider?
What should an EMI do in response to a customer information breach reported by a service provider?
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What type of risks should an EMI consider when outsourcing activities to a service provider outside Malaysia?
What type of risks should an EMI consider when outsourcing activities to a service provider outside Malaysia?
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What is a key consideration for an EMI when assessing the risks associated with a single service provider?
What is a key consideration for an EMI when assessing the risks associated with a single service provider?
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Which of the following is NOT a data protection measure that an EMI should verify with a service provider?
Which of the following is NOT a data protection measure that an EMI should verify with a service provider?
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What must an EMI ensure regarding outsourcing arrangements conducted outside Malaysia?
What must an EMI ensure regarding outsourcing arrangements conducted outside Malaysia?
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During due diligence, what aspect should an EMI assess regarding a subcontractor's role?
During due diligence, what aspect should an EMI assess regarding a subcontractor's role?
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What must an EMI do to ensure that an outsourcing agreement is effective and enforceable?
What must an EMI do to ensure that an outsourcing agreement is effective and enforceable?
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In what situation can an EMI rely on third-party certifications for audits?
In what situation can an EMI rely on third-party certifications for audits?
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Which of the following constitutes an undue risk that should be evaluated by an EMI?
Which of the following constitutes an undue risk that should be evaluated by an EMI?
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What must an EMI access regarding the cloud service provider's BCP?
What must an EMI access regarding the cloud service provider's BCP?
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Why is it crucial for an EMI to conduct on-site inspections of cloud service providers?
Why is it crucial for an EMI to conduct on-site inspections of cloud service providers?
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When performing due diligence on an affiliate, what should an EMI focus on?
When performing due diligence on an affiliate, what should an EMI focus on?
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Which factor should NOT be delegated solely to the service provider in data security measures?
Which factor should NOT be delegated solely to the service provider in data security measures?
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What key aspect must an EMI assess when managing fraud risk?
What key aspect must an EMI assess when managing fraud risk?
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What is a critical element that must be included in an outsourcing arrangement proposal to the board?
What is a critical element that must be included in an outsourcing arrangement proposal to the board?
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What does effective disaster recovery arrangements for an EMI entail?
What does effective disaster recovery arrangements for an EMI entail?
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Which statement about access to systems by the Bank is true?
Which statement about access to systems by the Bank is true?
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How can an EMI ensure effective monitoring of a service provider?
How can an EMI ensure effective monitoring of a service provider?
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Study Notes
Outsourcing
- EMIs must ensure that outsourcing arrangements outside Malaysia are conducted in a manner that does not affect the EMI's ability to monitor the service provider, the ability to recover data if the service provider fails, and the Bank's ability to exercise supervisory powers.
- When an EMI relies on third-party certification and reports from cloud service providers for audits, this does not substitute the EMI’s right to conduct on-site inspections where necessary.
- When engaging with cloud service providers, EMIs must be able to access information regarding the robustness of the provider's controls arising from BCP testing.
Fraud Risk Management
- An EMI must have risk management processes, procedures, systems, and controls in place to effectively mitigate and manage fraud risk.
- EMIs must conduct due diligence on affiliates, assess their ability to perform the outsourced activity, and document these findings in the outsourcing proposal.
- When outsourcing, an EMI must ensure a legally enforceable written agreement that includes all the minimum requirements specified in Appendix 6.
- An EMI must ensure the service provider is subject to data protection standards that are at least comparable to Malaysia's if they are located or performing the outsourced activity outside of Malaysia.
- EMIs must ensure their information is segregated from the information of other clients when the service provider provides services to multiple clients.
- EMIs must ensure that the service provider stays compliant with applicable security requirements and established security standards at all times.
- EMIs must ensure that the service provider undertakes measures to safeguard customer information and reports any breaches to the EMI within an agreed timeframe.
Due Diligence
- EMIs must conduct due diligence when considering outsourcing arrangements where the service provider is located or performing the outsourced activity outside Malaysia and ensure the assessment addresses the additional risks associated with outsourcing outside Malaysia.
- EMIs must also understand the ability of the EMI or the service provider to implement responses to emerging risk events in a timely manner.
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Description
This quiz covers the essential principles of outsourcing and fraud risk management for Electronic Money Institutions (EMIs). It explores the responsibilities of EMIs in monitoring service providers, conducting audits, and managing fraud risk effectively. Participants will enhance their understanding of compliance and risk management strategies relevant to outsourcing.