Financial Crime World

BANKING SECTOR VULNERABILITIES TO FINANCIAL CRIMES IN OMAN ON THE RISE

Cybersecurity Measures Mandatory for Banks in Oman

The Central Bank of Oman (CBO) has mandated banking and financial institutions operating in the country to strengthen their cybersecurity measures, following a surge in global cyber-attacks targeting the sector.

Key Pillars for Cybersecurity Framework

According to a recent regulatory framework issued by the CBO, banks must meet minimum requirements to build resilience against cyber-security risks. The framework comprises six key pillars:

  • Governance: Establishing clear policies and procedures for cybersecurity management.
  • Technology Operations: Implementing robust technologies and systems to detect and prevent cyber threats.
  • Third-Party Supply Chain Management: Ensuring that third-party vendors meet the same level of cybersecurity standards as in-house operations.
  • Online Financial Services: Securing online platforms and services, including digital payment systems.
  • Risk Management: Identifying, assessing, and mitigating potential cyber risks.

Oman’s Financial Sector Remains Vulnerable to Cyber-Crimes

The CBO had earlier warned that Oman’s financial sector remains vulnerable to cyber-crimes despite having avoided any significant disruptions in recent years. The apex bank noted a 46% spike in global cyber-attacks targeting financial institutions in 2022, with the industry remaining a prime target for international cyber gangs.

Concerns about Vulnerability to Cyber-Fraud and Other Crimes

The upsurge in attacks highlights the potential risks to customer trust in digital financial services and the sector as a whole. Oman’s regulatory authorities are also concerned about vulnerability to cyber-fraud and other crimes, particularly with the upcoming authorization of transactions involving cryptocurrencies and virtual assets.

Central Bank Formulating Framework for Virtual Assets and CBDCs

The CBO is currently formulating a framework regulating virtual assets and service providers, while studying the introduction of Central Bank Digital Currencies (CBDCs). The move aims to promote digital innovation in the sector while ensuring robust cybersecurity measures are in place.