Friday, 16 September 2016

Central banks seek global standards in wake of Bangladesh heist

In World Economy News 16/09/2016

The world’s major central banks, stung by this year’s $81-million heist in Bangladesh, have launched a task force to consider setting broad rules to protect the vast network of cross-border banking from cyber attacks, according to two sources with knowledge of the matter.
The committee of central banks, part of the Bank for International Settlements (BIS) in Basel, Switzerland, set up the task force this summer. It has begun gathering information from members on their protections against fraud, said the sources, who requested anonymity because work had just begun.

The task force could ultimately set cyber security standards that may be adopted globally. The new principles or guidance could cover responsibilities of banks that send and receive money transfers, and the networks like SWIFT that transmit payment instructions in correspondent banking.
The task force aims to consider recommending the steps each player should follow if a central bank falls short of protecting its systems from hackers, what role domestic regulators should play, and how to respond if another breach happens, the sources said.
The BIS, which oversees the Committee on Payments and Market Infrastructures (CPMI) that launched the effort, declined to comment.

Source: Reuters (Reporting by Jonathan Spicer and Tom Bergin; Editing by Chizu Nomiyama)