Financial Crime World

Cybersecurity Measures Against Financial Crime Get Boost in Oman

The Central Bank of Oman (CBO) has issued new regulatory guidelines mandating banks and financial institutions to enhance their cybersecurity measures to prevent financial crimes. These guidelines, which came into effect recently, require licensed financial institutions to adhere to a set of minimum requirements to ensure the resilience of their operations and critical assets against cyber threats.

Key Areas for Cybersecurity Measures

The CBO has identified six key areas, dubbed “Control Domains,” where banks and financial institutions must implement security precautions:

  • Governance, Compliance & Audit: Ensure effective governance structures, compliance with regulations, and regular audits to identify vulnerabilities.
  • Technology & Operations: Implement robust technology infrastructure, secure data storage, and efficient operations to prevent disruptions.
  • Third Party Supply Chain Management: Vet third-party vendors and service providers to ensure they meet cybersecurity standards.
  • Online Financial Services: Secure online channels for financial transactions, protect customer data, and implement incident response plans.
  • Risk Management: Identify, assess, and mitigate cyber risks to prevent attacks.
  • Cyber Risk Management: Implement a comprehensive risk management framework to address potential threats.

Warning of Cyber Attacks

The CBO’s latest Financial Stability Report 2023 warned that Oman’s financial sector, while having been spared any major cyber attacks in recent years, remains a potential target for cybercriminals. The report highlighted a staggering 46% spike in cyber attacks targeting financial institutions globally in 2022, underscoring the need for heightened vigilance.

Prioritizing Cybersecurity

The CBO emphasized that the Omani financial sector is vulnerable to cyber risks and has not experienced any significant disruptions from such threats recently. Therefore, cybersecurity remains a top strategic priority for the bank. The authorities aim to strike a balance between promoting innovation and ensuring the stability of Oman’s financial system.

Authorizing Crypto-Currencies and Virtual Assets

The CBO is preparing to authorize transactions involving crypto-currencies and other virtual assets for the first time. A framework regulating virtual assets and service providers is currently being formulated, while the Central Bank is also exploring the introduction of Central Bank Digital Currencies (CBDCs).

Managing Cyber Risks in a Digital Era

The development of new digital products and innovations is expected to increase the vulnerability of Oman’s financial sector to cyber fraud and other criminal activity. As such, the authorities are keen to ensure that all stakeholders are equipped to manage these risks effectively.

Conclusion

In conclusion, the CBO has called on banks and financial institutions to prioritize cybersecurity, noting that customer trust in digital financial services and the entire financial sector is at risk if such attacks are successful. By implementing robust cybersecurity measures, Oman’s financial sector can protect itself against cyber threats and maintain stability in an increasingly complex digital landscape.