Atlassian and BaFin Compliance: Getting Cloud Security Right in the Financial Sector

The digital transformation has fundamentally reshaped the financial services industry. Cloud computing plays a central role here: driving efficiency, scalability, and innovation. Yet, in a highly regulated European environment, it also brings heightened requirements for security and compliance.

Banks, insurers, and FinTechs across the EU must comply with strict regulatory frameworks – in particular those of the European Banking Authority (EBA) and the German Federal Financial Supervisory Authority (BaFin). Both authorities set high standards for IT outsourcing and the handling of sensitive data.

With the EU Financial Services Addendum (EU FSA), Atlassian provides a solution specifically designed to meet these requirements. This article examines the regulatory foundations, the particular challenges facing financial institutions, and how Atlassian’s EU FSA establishes a strong basis for secure and compliant cloud adoption.

The Regulatory Landscape: Spotlight on EBA and BaFin

EBA Guidelines on Outsourcing

The EBA Guidelines (EBA/GL/2019/02) establish consistent supervisory expectations across the EU. They are technology-agnostic and apply to all forms of outsourcing, including cloud services. Key requirements include:

• Due diligence: thorough vetting of providers.
• Clear contractual arrangements and ongoing monitoring.
• Data residency and portability: ensuring secure storage and potential repatriation.
• Exit strategies: minimizing vendor lock-in and safeguarding business continuity.

BaFin Requirements for Cloud Computing

BaFin expands on these guidelines in its BAIT framework and Cloud Outsourcing Guidance. Cloud computing is treated as outsourcing subject to the same strict controls as internal operations. Core requirements include:
Information security: encryption, access control, incident management.

• Risk management: systematic identification and mitigation of outsourcing risks.
• Audit and inspection rights: comprehensive rights for institutions and regulators.
• Data protection & residency: GDPR compliance and, where required, EU data storage.
• Exit strategies: workable solutions to ensure smooth transitions.

Atlassian’s EU Financial Services Addendum (EU FSA)

The EU FSA is a contractual addendum to the Atlassian Subscription Agreement. It is designed to enable European financial institutions to use Atlassian Cloud products in compliance with EBA and BaFin regulations. Who Can Use the EU FSA?

• Banks, insurers, and FinTechs in the EEA or the United Kingdom.
• Requirement: a Minimum Spend Agreement (MSA) of at least USD 150,000 annually.

Covered Products

• Confluence Cloud Enterprise
• Jira Align Cloud Enterprise
• Jira Service Management Cloud Enterprise
• Jira Software Cloud Enterprise (Standard or Premium editions are excluded.)

Benefits of the EU FSA

✔ Comprehensive audit rights for customers, auditors, and regulators.
✔ Extended reporting obligations aligned with regulatory standards.
✔ Regulator cooperation in the event of supervisory requests.
✔ Service continuation even in cases of termination or insolvency.
In this way, Atlassian goes beyond standard offerings and directly addresses the needs of European regulators.

Broader Implications of Cloud Compliance in the EU

The Shared Responsibility Model

Cloud compliance is governed by the principle of shared responsibility:

• The cloud provider ensures security of the cloud (infrastructure, networks, physical security).
• The financial institution ensures security in the cloud (data, applications, access controls).
• Only clear definitions and close cooperation prevent compliance gaps.

Data Residency and Sovereignty

While the GDPR does not mandate EU-only data storage, it sets strict rules for transferring personal data to third countries. Many financial institutions, however, prefer to store sensitive data within the EU to strengthen compliance and customer trust. Providers must therefore support region-specific data residency.

Digital Operational Resilience Act (DORA)

Another milestone is the upcoming DORA regulation. From 2025, financial institutions will face binding requirements for ICT risk management, third-party management, incident handling, and operational resilience testing. This will directly affect cloud providers and requires financial institutions to adapt compliance strategies proactively.

Practical Challenges

• Regulatory complexity (EBA, BaFin, and national requirements).
• Lack of expertise in cloud and compliance topics.
• Vendor dependency and the need for close oversight.
• Continuous monitoring to keep pace with evolving regulations and technologies.

Conclusion

Cloud adoption offers financial institutions vast opportunities for efficiency and innovation, but only when paired with rigorous compliance.
Atlassian’s EU Financial Services Addendum provides a pragmatic solution that addresses audit rights, reporting, and regulator cooperation, building trust in compliant cloud operations.

At the same time, regulations such as DORA highlight that compliance is not static but an ongoing process. Financial institutions must design strategies with regulation in mind from the outset and collaborate closely with their cloud providers.

With solutions like Atlassian’s EU FSA, financial institutions can balance digital transformation with regulatory security, ensuring their cloud journey is both innovative and future-proof.