Cybersecurity Measures Mandated for Omani Banking Sector to Combat Financial Crime
In a bid to strengthen its defenses against emerging cyber threats, Oman’s Central Bank has issued a new regulatory framework requiring licensed banks and financial institutions to secure their operations and critical assets. This move comes as part of efforts to mitigate the risks associated with financial crime and maintain public trust in digital financial services.
Strengthening Defenses Against Cyber Threats
Under the new framework, banks, financing and leasing companies, payment service providers, and money exchange companies must adhere to a set of minimum requirements designed to build resilience against cyber threats. The regulatory guidelines are structured around six key pillars, or “Control Domains,” which focus on:
- Governance: Effective management and oversight of cybersecurity practices
- Compliance: Adherence to relevant laws, regulations, and industry standards
- Technology: Implementation of robust security measures and regular updates
- Third-Party Supply Chain Management: Secure relationships with vendors and service providers
- Online Financial Services: Protection of digital channels and customer data
- Risk Management: Identification, assessment, and mitigation of cybersecurity risks
Growing Concern Over Cybercrime
The Central Bank has cited the growing threat of cybercrime as a major concern, particularly in light of a staggering 46% surge in attacks targeting financial institutions globally in 2022. The spike in attacks highlights the attractiveness of the banking and financial sector to international cybercriminals seeking to exploit vulnerabilities for financial gain.
Oman’s Financial Sector Remains Resilient
According to the Central Bank’s latest Financial Stability Report, Oman’s financial sector has been fortunate thus far to have avoided major disruptions from cyber risks. However, the country is not immune to such threats, and regulatory authorities are taking proactive measures to ensure the sector remains resilient.
Preparing for the Future of Digital Finance
As Omani regulatory authorities prepare to authorize transactions involving cryptocurrencies and virtual assets, cybersecurity remains a top strategic priority. The Central Bank is also exploring the introduction of new digital products, including central bank digital currencies (CBDCs), which could further enhance the sector’s resilience against cyber threats.
By implementing these measures, Oman’s banking sector can better withstand the growing threat of financial crime and maintain public trust in digital financial services.