CBN set to revamp banking regulations

In view of addressing losses that emanate from cybercrime and technology risk in the financial sector, the Central Bank of Nigeria (CBN) is considering revamping the modalities of banking regulations.

The apex bank through its Deputy Governor, CBN, Aishah Ahmad, stressed the need to redesign regulations that will address cybercrimes and technological risks that may arise from emerging modern financial firms in the country.

Ahmad who was represented by the Executive Director of Banking Supervision Department, Christian Okoye made this known at a seminar organised by Risk Managers Association of Nigeria (RIMAN) in collaboration with Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.

“There is a compelling need to redesign regulations that will address the risk that may emanate from the new emerging and increasing modern class of financial firms.” – Ahmad

This move has become imperative as a report by McAfee’s Centre for Strategic and International Studies suggested that the annual cost of cybercrimes in 2017 hit $600 billion worldwide as hackers become more sophisticated and criminal marketplaces and cryptocurrencies thefts multiplied.

Recall that the US domestic intelligence and security service, Federal Bureau of Investigation (FBI), has warned all banks across the globe of an imminent threat that their cash machines can be manipulated by cybercriminals.

In a confidential alert, the intelligence chiefs warned that cybercriminals are planning a global ‘cash-out scheme’ known as an Automated Teller Machine (ATM) ‘jack-potting’, which enables fraudsters to use malware to take over ATMs and steal millions of dollars.

“The FBI has obtained unspecified report indicating cyber criminals are planning to conduct a global Automated Teller Machine (ATM) cash-out scheme in the coming days, likely associated with an unknown card issuer breach and commonly referred to as an ‘unlimited operation’.”

Also, in a bid to counter the high rate of internet fraud in Nigeria, the CBN had said it is developing a Risk-Based Cyber Security Framework for financial institutions.