Central bank taking steps to mitigate cyber risks

The UAE Central Bank is taking measures to mitigate the risks of cyber-attacks and is planning to set up a dedicated department to deal with the issue, its governor said in Abu Dhabi yesterday.

“Cyber risks go hand in hand with digitalisation of financial services,” said Mubarak Rashed Al Mansouri, Governor of the UAE Central Bank, while speaking at the Middle East Banking Forum.

“[The] UAE Central Bank has taken a coordinated effort with the UAE National Electronic Security Authority to set up minimum required standards for financial institutions under our jurisdiction and a dedicated department will be set up at the central bank to make sure that these standards are implemented.”

He also said a joint working group with the UAE Banks Federation was set up to follow up progress on the developments and make recommendation on cyber risks.

“The recent high profile cyber-attacks on financial institutions across the globe has presented a wake-up call for the financial community to work together and lay the foundation for effective control and sound risk management framework in order to enhance the pillars for cyber-security controls.”

Awareness campaign

The central bank is also coordinating with stakeholders to increase awareness among users on cyber risks and how to mitigate them.

Speaking on the financial technology (fintech) industry, he said it was lagging in the Middle East region due to a lack of competition, limited funding of research and development, and inappropriate regulatory frameworks.

“There is a need to improve cooperation between regulatory institutions so that financial institutions have the right incentives to adapt to digital platforms and other cost-effective innovation solutions.”