Exchange Control Circular No. 2/2022

Circular Reference: Exchange Control Circular No. 2/2022

Circular Date: 18 January 2022

Circular Status: Pending

Offshoring and cloud computing

We refer to Exchange Control Circular No. 10/2020 and advise that flowing from representations made, the following amendments to the Currency and Exchanges Manual for Authorised Dealers (AD Manual) and Currency and Exchanges Manual for Authorised Dealers in foreign exchange with limited authority (ADLA Manual) have been made accordingly:

Section J.(D)(i) of the AD Manual and section C.1(D)(i) of the ADLA Manual

A new subsection (i) with key concepts has been inserted as follows:

(i) For the purpose of this subsection, the following key concepts are outlined below:

ConceptDescription
Forms of cloud computing may include a public cloud, private cloud, community cloud or hybrid cloud.
Computers providing capacity can be in different geographical locations which may be subject to different laws, business practices and government oversight.
Local outsourcingLocal outsourcing is the subcontracting of business processes (including, but not limited to exchange control compliance), functions, services, systems, data or infrastructure of reporting entities, as contemplated in the Authorised Dealer Manual and ADLA Manual, to a third party within South African jurisdiction but not based at the premises of the relevant reporting entities.
International outsourcingInternational outsourcing is the subcontracting of business processes (including, but not limited to exchange control compliance), functions, services, systems, data or infrastructure of reporting entities, as contemplated in the Authorised Dealer Manual and ADLA Manual to a third party situated outside the borders of South Africa.
Regulatory access to dataRegulatory access to data refers to FinSurv’s access to data and systems. This includes access to transactional systems’ front-end and back-end systems as well as folders, servers and databases.
System replicationSystem replication refers to duplication of transactional systems’ front-end and back-end systems as well as folders, servers and databases. This also includes the replication tools used to keep transactional systems’ frontend and back-end systems as well as folders, servers and databases synchronised.
Data replicationData replication refers to the process of copying data from one location to another, including the replication tools used.

Sections J.(D)(ii) to (viii) of the AD Manual and sections C.1(D)(ii) to (vii) of the ADLA Manual

The current subsections (i) to (vii) have been renumbered (ii) to (viii). The words ‘to authorise’ and ‘exclusively’ have been deleted in subsection (ii).

(ii) The Financial Surveillance Department is prepared to consider requests for the following offshoring and cloud computing models relevant to data, infrastructure and systems, as contemplated in the Authorised Dealer Manual/ADLA Manual:

The amended Authorised Dealer Manual and ADLA Manual may be accessed on the South African Reserve Bank website, www.resbank.co.za by following the links: Home > What we do > Financial Surveillance > Financial Surveillance documents.

Head of Department: Financial Surveillance

View the Circular

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