Hungary

Regulations

• Can financial institutions use AWS?

  Yes. Financial institutions in Hungary are permitted to use cloud services, provided that they comply with applicable legal and regulatory requirements, such as those described below. 

• Who is the financial regulator?

  Magyar Nemzeti Bank (Central Bank of Hungary or MNB) is the supervisory authority of the financial markets in Hungary and supervises, inter alia, credit institutions, securities markets and brokers, fund managers, payment services providers, investment firms, and insurance and reinsurance companies. The MNB provides financial consumer protection, as well as market surveillance intended to eliminate unauthorized, unlicensed financial service providers, or those without prior notification. The MNB monitors the activities of the financial institutions in relation to preventing and combating money laundering and the financing of terrorism, as well as performing IT supervision.
  

• What regulations apply to financial institutions using AWS?

  The Digital Operational Resilience Act (DORA) is a pan-European legislative framework for operational and cyber resilience in the financial sector. DORA outlines the following:

  • Improvements in information and communications technology (ICT) and security risk-management requirements
  • A harmonized regime for ICT incident reporting
  • Development of a digital operational resilience testing framework
  • An oversight framework for critical ICT third-party providers

  DORA doesn't restrict or limit how financial entities (FEs) subject to DORA requirements adopt and use cloud services.
  

  Financial institutions in Hungary may be subject to a number of different legal and regulatory requirements when they use cloud services. For example, the Central Bank of Hungary has confirmed the applicability of the European Banking Authority Guidelines on outsourcing arrangements issued 25 February 2019 (“EBA Guidelines”) in Hungary. The EBA Guidelines apply to EU-regulated credit institutions, investment firms, electronic money institutions and payment institutions, and provide guidance to these entities when they are using or planning to use cloud services. This guidance covers a variety of contractual and operational areas, including audit rights, security of data and systems, location of data and data processing, sub-outsourcing, and contingency plans and exit strategies.

  Customers that have questions about the EBA Guidelines, and how these may apply to their use of AWS services, can reach out to their account representative.

  Local regulations, guidelines, and laws in Hungary may also apply to financial institutions in Hungary when they use cloud services, including Recommendation No. 4/2019 (IV. 1.) of the Hungarian National Bank on the usage of community and public cloud computing services.
  

  Regulations are changing rapidly in this space, and AWS is working to help customers proactively respond to new rules and guidelines. AWS encourages its financial institutions customers to obtain appropriate advice on their compliance with all regulatory and legal requirements that are relevant to their business, including the EBA Guidelines and local regulations, guidelines, and laws.
  

• Key considerations for financial institutions using AWS

  AWS is committed to offering customers a strong compliance framework and advanced tools and security measures that customers can use to evaluate meet, and demonstrate compliance with applicable legal and regulatory requirements.

  Financial institutions who are using or planning to use AWS services can take the following steps to better understand their compliance needs:

  1. Consider the purpose of the workload(s) under consideration and the relevant categories of data in order to anticipate which legal and regulatory requirements may apply.

  2. Assess the materiality or criticality of the relevant workload(s) in light of local requirements. For example, Section 4 of the EBA Guidelines contains materiality assessment considerations for financial institutions.
  

  3. Review the AWS Shared Responsibility Model and map AWS responsibilities and customer responsibilities according to each AWS service that will be used. Customers can also use AWS Artifact to access AWS’s audit reports and conduct their assessment of the control responsibilities.

  4. Customers who have further questions about how AWS services can enable their security and compliance needs, or who would like more information, can contact their account representative.

• Key data privacy and protection considerations for financial institutions using AWS

  Financial institutions in Hungary using AWS services should also consider applicable privacy requirements, including the General Data Protection Regulation (“GDPR”).
  

  If customers process or are planning to process the personal data of data subjects in the European Union (EU), they should visit AWS’s General Data Protection Regulation (GDPR) Center. More information on these requirements is included in Navigating GDPR Compliance on AWS.
  

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