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Strengthening Cybersecurity in Trinidad and Tobago’s Financial Institutions

KINGSTON, Jamaica - A recent assessment by the International Monetary Fund (IMF) has highlighted the need for Trinidad and Tobago to strengthen its cybersecurity measures in the financial sector.

The Need for Strengthened Cybersecurity Measures

The Central Bank of Trinidad and Tobago (CBTT), responsible for supervising banks, non-banks, insurance companies, pension firms, bureaux de change, and payment systems, is taking steps to address this issue. According to the assessment, the CBTT has proposed drafting a guideline on cyber risk management for financial institutions.

Current State of Cybersecurity in Financial Institutions

The IMF report noted that among the CBTT-supervised entities:

  • Banks appear to be better informed on ICT/cyber risks compared to other entities like insurance and pension firms.
  • Insurance firms have not been subjected to similar engagements, leaving a gap in their preparedness to address ICT/cyber risks.

Proposed Guidelines for Cyber Risk Management

The proposed guideline aims to address both banks and insurance firms. The report highlighted that discussions with select banks revealed that they are considering ICT/cyber risks carefully and have taken various steps to mitigate those risks.

Challenges and Recommendations

  • The report noted that there was a willingness among banks to report cyber incidents to the CBTT but reservation in sharing information among peers, an area where the CBTT can build awareness further.
  • The IMF assessment recommended:
    • Augmenting resources in ICT/cyber risk supervision
    • Leveraging capacity available at ‘Risk Management’ and ‘Audit’ functions of the CBTT for supervisory purposes
    • Addressing structural constraints, including the acute shortage of IT qualified resources within supervision

Conclusion

In conclusion, the IMF assessment highlights the need for Trinidad and Tobago to strengthen its cybersecurity measures in the financial sector, particularly among insurance firms. The CBTT’s proposed guideline on cyber risk management is a positive step forward, but further resources and structural changes are needed to ensure effective supervision of ICT/cyber risks.