Responsibility for safety and soundness

Answered by:

Question:

Can we shift responsibility for safety and soundness to a third-party service provider in our contract with them?

Answer:

Although the contract MAY make the third-party accountable to your bank for breach of the terms of your contract, your regulator will always hold the bank responsible for ensuring that the activities affected by the third-party relationship are performed safely and soundly and in compliance with applicable laws and regulations. You cannot delegate that responsibility to anyone.

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Learn more about John Burnett’s, Managing the Risk of Third-Party Relationships webinar.