Financial Crime World

Here is the rewritten article in Markdown format:

Financial Institutions in Oman Must Meet Cybersecurity Requirements Amid Growing Threats

The Central Bank of Oman (CBO) has introduced a new regulatory framework mandating banking and financial institutions operating in the Sultanate to secure their operations against cyber threats. This move comes as the country prepares to authorize transactions involving cryptocurrencies and virtual assets for the first time.

The New Regulatory Framework

Under the new framework, banks and financial institutions must meet a set of minimum requirements to build resilience against cybersecurity risks. These requirements are organized into six key pillars, known as ‘Control Domains’, which include:

  • Governance: Establishing clear policies and procedures for cybersecurity management
  • Compliance: Ensuring adherence to relevant laws and regulations
  • Technology: Implementing robust technology solutions to detect and prevent cyber-attacks
  • Third-party Supply Chain Management: Ensuring the security of third-party vendors and suppliers
  • Online Financial Services: Protecting online financial transactions and services
  • Risk Management: Identifying, assessing, and mitigating cybersecurity risks

The Growing Threat of Cyber-Attacks

The move is aimed at countering the growing threat of cyber-attacks targeting financial institutions globally. According to the CBO’s Financial Stability Report 2023, Oman’s financial sector has not been severely impacted by cyber-attacks in recent years, but remains a potential target for cyber-criminals. The report highlighted a staggering 46% increase in cyber-attacks on financial institutions worldwide in 2022.

The Impact of Cyber-Attacks

The Central Bank of Oman has warned that the rise in attacks could negatively impact 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, but like any other jurisdiction, the Omani financial sector is vulnerable to such risks,” said the CBO.

Authorizing Transactions Involving Cryptocurrencies and Virtual Assets

The regulatory body has also expressed concerns over vulnerability to cyber fraud and criminal activity as it prepares to authorize transactions involving cryptocurrencies and virtual assets. A framework regulating virtual assets and service providers is currently being formulated.

Digital Innovations and CBDCs

In addition, the Central Bank of Oman is considering the roll-out of new digital products, including Central Bank Digital Currencies (CBDCs). A task force has been established to study the introduction of CBDCs, while separate groups are focused on other digital innovations.