Sector: Financial Services
Service: Advisory in Compliance Management
This Schedule A bank with a broad presence in the US was renegotiating its Data Centre Services contract and suspected it was not fully compliant with the applicable regulations. Our mandate was to assess cross-border Data Centre contracts in the context of efficiency and constraints from Regulation W. The problem posed to the team was how to structure the new contract to ensure compliance with applicable regulations.
The engagement was approached in 3 different phases:
- Assess current data center services contract and relative objectives, pain points and challenges. Review existing contract structure, pricing structures and associated service definitions with the output identifying risks and gaps.
- Assess current business processes relative to cross border billing practices, treatment and structure of enterprise resources (people, process, systems), requirements for market substantiation in the provision of services and identify gaps and risks to compliance requirements
- Make recommendations considering industry best practices, efficiencies and streamlining in four key areas of focus; and contract considerations that are up for negotiation.
- Provide client with summary of best practices and relative regulation clauses
- Identify any supplementary infractions which may be subject to regulatory review.
- The client retained their legal and tax advisors, who validated our findings.
- Additional findings were provided to the client which had IRS implications, not initially indicated.
- Client proceeded with implementing the recommendations as provided by the team.