Financial Crime World

Oman’s Financial Sector Under Scrutiny: Central Bank Issues New Cybersecurity Framework for Banks and Financial Institutions

The Central Bank of Oman (CBO) has issued a new regulatory framework aimed at strengthening the resilience of Oman’s financial sector against cyber threats. The move comes as a response to growing concerns over the increasing frequency and severity of cyber-attacks targeting financial institutions globally.

Key Pillars of the New Framework

The regulatory framework covers six key pillars, including:

  • Governance: Establishing clear roles and responsibilities for cybersecurity management
  • Compliance & Audit: Implementing robust compliance and audit processes to ensure adherence to cybersecurity standards
  • Technology & Operations: Ensuring secure technology infrastructure and operations to prevent cyber threats
  • Third Party Supply Chain Management: Managing third-party relationships to minimize risks associated with outsourcing
  • Online Financial Services: Ensuring secure online financial services to protect customer data and transactions
  • Risk Management: Identifying, assessing, and mitigating cybersecurity risks to ensure business continuity

Growing Concerns Over Cyber Threats

The Central Bank’s Financial Stability Report 2023 highlighted the significant risk levels posed by fintech and electronic payment systems as Oman embarks on its digital transformation journey. Globally, there was a staggering 46% surge in cyber-attacks targeting financial institutions in 2022, underscoring the industry’s dominant appeal as a target for international cyber gangs.

Proactive Measures to Address Vulnerability

Oman’s regulatory authorities are taking proactive measures to address vulnerability to cyber fraud and other criminal activity. The Central Bank is currently formulating a framework regulating virtual assets and service providers, while also weighing the roll-out of new digital products such as Central Bank Digital Currencies (CBDCs).

Task Force to Study CBDCs

The introduction of CBDCs has been assigned to a task force, which will study the feasibility of introducing these digital currencies. Meanwhile, separate groups are focused on other digital innovations aimed at enhancing the resilience and efficiency of Oman’s financial sector.

Cybersecurity Remains Top Strategic Priority

With cyber-security remaining a top strategic priority for the CBO, banks and financial institutions in Oman must now adhere to the new regulatory framework to ensure the continued stability and trustworthiness of the country’s financial system.