Provisions and Guidelines for Safe and Sound Electronic Banking
In its continuous effort to promote and ensure safe and sound banking practices on the islands of Curaçao and Sint Maarten, the Centrale Bank van Curaçao en Sint Maarten (“the Bank”) hereby issues the “Provisions and Guidelines for Safe and Sound Electronic Banking”(hereafter “Provisions and Guidelines”).
Ongoing innovations in information technology and competition among banking institutions, new market entrants, and mergers and acquisitions have contributed worldwide to a wider array of electronic banking (“hereinafter e-banking”) products and services. The islands of Curaçao and Sint Maarten have also experienced this development amongst its credit institutions, and the acceptance of e-banking services has grown rapidly.
E-banking carries benefits as well as risks to credit institutions. Because the characteristics of e-banking increase and modify banking risks and thereby influence the overall risk profile of banking, the Bank finds it important that these risks be recognized, addressed, and managed by the relevant credit institutions in a prudent manner.
Worldwide fraud, identity theft, money laundering, and terrorist financing also frequently are incline to move to countries where credit institutions provide e-banking products and services and which have inadequate risk management regarding e-banking. Therefore, the Bank recommends that credit institutions adopt relevant policies and stronger risk management including internal control to prevent these kinds of immoral activities.
These Provisions and Guidelines provide credit institutions, which are subject to the Bank’s supervision, with guidance on the general principles for risk management of e-banking
and outline suggestions for consumer security and education. The Provisions and Guidelines should help credit institutions to expand their risk oversight policies and processes to cover their e-banking activities.
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Last updated 30.07.2012 10:37