Abstract

The article is a response to the need of looking at the issues of outsourcing part of banks’ operational risk to third parties, which may take a form of an instruction to perform certain tasks by those parties. In such a case, a question arises as regards the transfer of a bank’s liability for losses incurred by clients as a result of non-performance or improper performance of outsourcing contracts, and the possibility of its potential waiver or limitation.In practice, a question arises in this case concerning the scope of the control powers of the bank vis-à-vis the insourcer connected with the performance of outsourcing contracts and the possibility of carrying out audits and on-site visits to the service providers.The article also discusses the prerequisites for admissibility, the procedure and method of such inspections, both ordinary and extraordinary, and well as the possibility of further sub-outsourcing of these operations. The authors also point out the key issues related to the conclusion, performance and termination of outsourcing contracts by banks from the viewpoint of legal risks arising in connection herewith.