MAS has set out the measures that financial institutions must take to mitigate the growing risk of cyber threats. To this end, MAS issued a set of legally binding requirements to raise the cyber security standards and strengthen cyber resilience of the financial sector in Singapore. The measures will come into effect on August 06, 2020. MAS also published the frequently asked questions (FAQs) on these measures. These recently issued cyber hygiene measures are intended for financial holding companies (Notice 1119), all banks in Singapore pursuant to section 55(1) of the Banking Act (Notice 655), merchant banks (Notice 1118), financial advisers (Notice FAA-N21), capital market entities (Notice CMG-N03, insurance brokers (Notice 507), finance companies (Notice 834), and insurance agents (Notice 132).
These measures make compulsory the key elements in the existing MAS Technology Risk Management guidelines. The technology risk management guidelines are a set of best practices that provide financial institutions with guidance on the oversight of technology risk management, security practices, and controls to address technology risks. MAS expects financial institutions to observe the technology risk management guidelines, as this will be taken into account in MAS’ risk assessment of the financial institutions. As per the now-published measures on cyber hygiene, financial institutions must:
- Establish and implement robust security for IT systems
- Ensure updates are applied to address system security flaws in a timely manner
- Deploy security devices to restrict unauthorized network traffic
- Implement measures to mitigate the risk of malware infection
- Secure the use of system accounts with special privileges to prevent unauthorized access
- Strengthen user authentication for critical systems as well as systems used to access customer information
MAS, in September 2018, had sought feedback from the public on the proposal to make this suite of cyber security measures into legally binding requirements. Financial institutions generally welcomed these measures and provided some suggestions about implementation of the requirements. These suggestions include focusing on strengthening user access to systems that store or access customer data and allowing more time for financial institutions to design, acquire, and integrate robust user authentication technology into their critical systems.
Keywords: Asia Pacific, Singapore, Banking, Insurance, Securities, Cyber Resilience, Cyber Security, Cyber Risk, Technology Risk, MAS
Previous ArticleEBA Reviews Usefulness of Single Rulebook Questions and Answers
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
PRA published a statement to insurers that clarifies the approach to application of the matching adjustment during COVID-19 crisis.
EBA published a report on the implementation of selected COVID-19 policies within the prudential framework for banking sector.
EC launched a consultation to revise the network and information systems (NIS) Directive (2016/1148), which was adopted in July 2016 and is the first horizontal internal market instrument aimed at improving the resilience of the EU against cybersecurity risks.
PRA published a statement that outlines its view on the implications of LIBOR transition for contracts in scope of the “Contractual Recognition of Bail-In” and “Stay in Resolution” parts of the PRA Rulebook.
PRA published the policy statement PS15/20 to reflect additional resilience associated with higher macro-prudential buffers in a standard risk environment with a reduction in Pillar 2A capital requirements.
BCBS published the eighteenth progress report on implementation of the Basel III regulatory framework in member jurisdictions.
FCA announced proposals that would provide continued support for certain consumer credit products to users, who are facing a financial impact because of the exceptional circumstances arising from the COVID-19 pandemic.
ACPR published a draft version of taxonomy RAN 1.4.0_PWD1, along with the related documentation, for Solvency II reporting.
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).