HM Treasury has designated Amazon Web Services and Google Cloud as critical third parties to the UK financial sector. Under the Critical Third Party (CTP) regime effective January 1, 2025, these tech giants will be subject to oversight from UK regulators such as the Bank of England. This move aims to enhance the operational resilience of the financial sector amidst increasing reliance on cloud services.
Amazon Web Services (AWS) and Google Cloud have been designated as critical third parties (CTPs) to the UK's financial sector by HM Treasury. This was formally enacted under the CTP regime which becomes effective on January 1, 2025.
The CTP regime permits UK financial regulators, including the Bank of England, the Prudential Regulation Authority (PRA), and the Financial Conduct Authority (FCA), to set requirements and have direct oversight over AWS and Google Cloud. These companies are critical to the financial ecosystem due to their widespread service usage.
This designation focuses on enhancing operational resilience within the financial sector. With major tech providers like AWS and Google Cloud under regulation, the sector is better equipped to safeguard against systemic risks associated with cloud computing dependencies.
Both AWS and Google Cloud have committed to working with UK authorities to meet their obligations. This includes self-assessment and alignment with the regulatory framework set by the CTP regime to ensure compliance and support for financial system stability.
By enhancing oversight of critical third parties, the UK aims to bolster the operational resilience of its financial sector, a crucial move given the prevalent use of cloud services in banking and finance.
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Amazon Web Services has been designated as a critical third party to the UK's financial sector by HM Treasury. This designation, effective January 1, 2025, enables UK regulators to oversee AWS and enforce operational resilience requirements for financial firms using its services.