The Ninja Sensei’s Logbook: The Financial Services & Markets Bill
The rising cyber threats on financial institutions highlight the call for a sector-wide regulation which is what the Financial Services and Markets Bill will aim to do.
What’s it about:
The Bill was introduced for reading in the Singapore Parliament on 14 February 2022. It was introduced in recognition of the growing importance of a financial sector-wide regulatory approach to strengthen the MAS’ agility and effectiveness in addressing financial sector-wide risks in an ever-changing and increasingly integrated world.
The key aspects of the Bill:
- MAS’ streamlined and extended prohibition powers
- Stricter regulation of virtual asset service providers to address the concerns of money laundering and terrorist financing
- Harmonised authority to impose standards on risk management in technology
- Statutory immunity for mediators, adjudicators, and staff of an authorised dispute resolution scheme operator
What does this Bill mean to financial institutions?
A higher penalty for a cyber attack or disruption to essential services.
What you should know about cyberattacks targeting financial institutions:
In a report released by VMWare, there was a 238% increase in cyberattacks targeting financial institutions in the first half of 2020 alone. Additionally, the average cost of a data breach in the financial sector (also in 2021) is $5.72 million according to IBM and Ponemon Institute.
If you are in the financial services sector, you must establish a strong cybersecurity strategy to protect your business against common cyber threats in your industry.
For instance, you should work with your data protection officer to ensure you have set up enough security arrangements for PDPA compliance. Additionally, it is your responsibility to protect your network by conducting regular security scans to check for vulnerabilities.
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