Financial Crime World

Malawi’s Finance Industry Under Siege: Cybersecurity Threats Loom Large

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The Reserve Bank of Malawi (RBM) has recently issued new guidelines to tighten cybersecurity risks for commercial banks, replacing the outdated Information Technology Risk Management Guidelines of 2016. According to RBM Governor Dalitso Kabambe, if not properly managed, cyber security risk has the potential to cause significant disruption to the financial industry.

The Risks of Cybersecurity Breaches

  • Denial of service to customers
  • Exposure of private information
  • Deletion or tampering with customers’ and banks’ records
  • Inability to manage both own and customers’ assets

Governor Kabambe emphasized the need for commercial banks to take proactive measures to mitigate these risks. He warned that information and cyber risk breaches could have severe consequences if not addressed promptly.

Cybersecurity: A Global Concern

The Information and Communications Technology Association of Malawi (ICTAM) president Bram Fudzulani concurred, stating that cybersecurity is a major concern worldwide, not just in the financial industry. He highlighted stealing of money and underlying technology or intellectual property as major threats.

Protecting Consumers’ Interests

Consumers Association of Malawi executive director John Kapito cautioned that the banking industry is a high-risk area that requires constant reviews on policies guiding and protecting consumers from illicit financial transactions. Kapito emphasized the need for robust measures to safeguard consumers’ interests.

New Guidelines: A Step Towards Stability and Integrity

The RBM’s new guidelines aim to provide minimum requirements for managing information and cyber security risk, strengthen banks’ information system security, and protect critical information infrastructure. The move is seen as a crucial step in ensuring the stability and integrity of Malawi’s financial sector.

By implementing these new guidelines, commercial banks in Malawi can better mitigate the risks associated with cybersecurity breaches and provide a safer and more secure environment for customers to conduct their financial transactions.