In response to the increased outsourcing of bank transactions, the Federal Banking Commission (FBC) has defined the requirements for outsourcing without a licence in a Circular Notice to Banks and Securities Dealers. According to the Notice, the new rules apply to all significant possibilities for outsourcing and take into account the requirements of the FBC to date with regard to EDP processing abroad. The FBC is now waiving the requirement that banks and securities dealers obtain a licence prior to the outsourcing of a service. The new rules continue to safegaurd the protection of banking secrecy and ensure that the outsourcing does not impair supervision by the FBC or the work of the auditors. The Circular Notice enters into force on November 1 1999.
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