Financial institutions increasingly concerned about cyberattacks 

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Willemstad/Philipsburg – Cyber risk has come to the top of financial institutions’ risk concerns,  reports the Centrale Bank van Curaçao and Sint Maarten (CBCS) in its 2024 Financial Stability  Report (FSR). The monetary union’s financial institutions are stepping up efforts and  expenditures to boost their cyber resilience.

Financial institutions in the Caribbean region have in recent years seen more cyberattacks and  digital disruptions. In some cases, these have caused severe financial damage along with a decline  in public confidence in the financial system. Local financial institutions have reported that they are  increasingly concerned about the threats of cyberattacks. Most institutions counteract this  growing threat by investing heavily in IT security.  

The CBCS has included cyber resilience as a focal point in its strategic agenda, working on a  roadmap for cyber security for financial institutions in the monetary union. This roadmap aims to  strengthen business continuity management systems so that institutions can recover more swiftly from potential attacks. The Provisions and Guidelines for Business Continuity Management have  been updated in accordance with the ISO22301:2019 standard. The next steps will include issuing  the Provisions and Guidelines for Cyber Security and providing training to supervised institutions.  After ensuring completion of the first phases of the roadmap, the CBCS will introduce stress testing  to help identify cyber-related vulnerabilities within financial institutions.  

With the FSR, the CBCS aims to inform the public on the state of the financial system in the  monetary union of Curaçao and Sint Maarten. Financial institutions face risks from escalating  geopolitical conflict and global financial conditions. Banks, pension funds, and insurance  companies continue to monitor risks such as asset quality, volatile markets, and rising reinsurance  costs due to climate risk. Overall, the financial sector has shown continued resilience and  increasing adaptability. 

For more insights into the state of the financial sector of Curaçao and Sint Maarten, the CBCS  invites you to check out the latest FSR available on its website at 

https://www.centralbank.cw/publications/financial-stability-reports/2024