BNM tightens cybersecurity safeguards for financial institutions amid rising global threats

KUALA LUMPUR, Nov 6 — Bank Negara Malaysia (BNM) has implemented regulatory requirements for financial institutions to enhance their cybersecurity defenses, as reported by Governor Datuk Seri Abdul Rasheed Ghaffour. This follows Prime Minister Datuk Seri Anwar Ibrahim's warning about the need for Malaysia to stay vigilant against rising global cyber threats, particularly those targeting the financial sector.

Abdul Rasheed emphasized that cybersecurity has always been a top priority due to its role in establishing trust and ensuring financial stability. He urged financial institutions to adopt a proactive and comprehensive approach, implementing robust measures to prevent cyber incidents and swiftly detect and contain threats. BNM regularly reviews and updates its guidelines, regulations, and standards to ensure financial institutions are prepared to counter emerging cyber threats.

To facilitate early threat identification and prevent sector-wide contagion, BNM has established incident reporting arrangements and platforms for exchanging threat intelligence between the central bank and financial institutions. BNM's Risk Management in Technology (RMiT) policy mandates financial institutions to conduct annual cybersecurity drills, which aim to test system resilience, uncover vulnerabilities, and maintain operational stability even if systems are compromised.

Abdul Rasheed stressed that cybersecurity preparedness must be universal across all financial institutions, regardless of size, as weaknesses in one institution can jeopardize the entire financial system. In the event of an attack, the primary focus is to contain the threat by isolating affected systems, disconnecting connections, and conducting assessments to minimize contagion risk.

Affected institutions may need to temporarily halt certain online operations while investigations and security evaluations are conducted before services can safely resume. BNM expects financial institutions to restore normal operations with minimal disruption while protecting customer data.