Financial Crime World

COMPLIANCE RISKS IN BANKING IN BANGLADESH

Regulation Overview

Bangladesh Bank has introduced the latest Guideline on ICT Security – version 4.0, which outlines how banks and financial organizations (FOs) should manage IT and security risks in Bangladesh.

Who Does it Apply To?

The Guideline on ICT Security applies to all:

  • Banks
  • Non-bank financial institutions
  • Mobile financial service providers
  • Payment service providers
  • Payment system operators
  • White label ATMs
  • Merchant acquirers regulated by Bangladesh Bank

Key Objectives of the Guideline

The primary objectives of the Guideline on ICT Security are to:

Establish a Secure IT Environment

  1. Establish ICT governance in the financial sector
  2. Help organizations develop their own ICT security policy
  3. Establish standard ICT security management approach
  4. Help organizations develop secure and reliable IT infrastructure
  5. Ensure business continuity management

Challenges in Implementing the Guideline

Implementing the Guideline on ICT Security can be challenging for banks and financial organizations in Bangladesh due to various factors, including:

Limited Resources

  1. Limited budget: Implementing robust security measures requires significant investment.
  2. Lack of skilled personnel: Banks may not have sufficient staff with expertise in IT security.
  3. Complexity of IT systems: Large and complex IT systems can be difficult to secure.

Solutions to Address Compliance Risks

To address compliance risks, banks and financial organizations in Bangladesh can consider the following solutions:

Conduct Regular Security Audits and Risk Assessments

  1. Conduct regular security audits and risk assessments
  2. Implement robust security controls, such as encryption and firewalls
  3. Train staff on IT security best practices
  4. Invest in incident response planning and disaster recovery

Case Study: Thales Data Security Solutions

Thales data security solutions enable banks and financial organizations to meet global compliance and data privacy requirements, including GDPR, PCI-DSS, and data breach notification laws.

Success Stories in Bangladesh

In Bangladesh, Thales has worked with several banks and financial organizations to implement robust data security measures, including encryption and key management. The company’s solutions have helped these organizations reduce their risk of non-compliance and protect sensitive customer information.

Conclusion

The Guideline on ICT Security is a crucial document for banks and financial organizations in Bangladesh, outlining minimum control requirements for ensuring a secure IT environment. While implementing the guideline can be challenging, banks can address compliance risks by conducting regular security audits, training staff, and investing in robust security controls.