Oman Banks and Financial Firms Mandated to Boost Cyber Security Amid Rising Global Threats
Central Bank of Oman Issues New Regulatory Framework
MUSCAT - In a move to safeguard its financial sector against growing cyber threats, the Central Bank of Oman has issued a new regulatory framework mandating banks and financial institutions operating in the country to strengthen their cybersecurity measures.
Key Pillars for Cybersecurity Measures
The regulatory framework covers six key pillars, or “Control Domains,” including:
- Governance: Establishing a clear cyber security governance structure
- Compliance & Audit: Implementing robust compliance and audit processes
- Technology & Operations: Ensuring technology and operations are secure and resilient
- Third Party Supply Chain Management: Managing third-party relationships to reduce risks
- Online Financial Services: Securing online financial services and transactions
- Risk Management: Identifying, assessing, and mitigating cyber security risks
Rising Global Cyber Threats
The move comes amid a backdrop of rising global cyber attacks targeting financial institutions, with a staggering 46% spike in such attacks globally in 2022 compared to the previous year. The Central Bank of Oman had warned in its recent Financial Stability Report 2023 that while Oman’s financial sector has been spared significant disruptions from cyber risks in recent times, it remains vulnerable to such threats.
Emphasis on Cybersecurity Vigilance
The apex bank emphasized that heightened cybersecurity vigilance is necessary to protect customer trust in digital financial services and the financial sector as a whole. “Oman has not experienced any significant disruptions from cyber risks in recent times. However, like any other jurisdiction, the Omani financial sector is vulnerable to such risks. Therefore, cybersecurity remains a top strategic priority for CBO,” it said.
Plans to Authorize Crypto-Currency Transactions
The Central Bank’s move also comes ahead of Oman’s plans to authorize transactions involving crypto-currencies and other virtual assets for the first time, with regulatory authorities preparing to introduce a framework regulating virtual assets and service providers.
Introduction of New Digital Products
Meanwhile, the Central Bank itself is exploring the introduction of new digital products, including Central Bank Digital Currencies (CBDCs), with a task force studying the potential roll-out. Separate groups are focused on other digital innovations aimed at strengthening Oman’s financial sector.
By mandating banks and financial institutions to boost their cybersecurity measures, the Central Bank of Oman is taking proactive steps to protect its financial sector from rising global cyber threats and ensure the trust of customers in digital financial services.