DFSA Cautions Against Increased Risks Of Cyber Attacks And Fraud

The Dubai Financial Services Authority (DFSA), has recently announced that it continues to closely assess and address the implications of the evolving situation of COVID-19 pandemic, according to a report in WAM.

The DFSA released a statement which said that it will undertake all the required proactive and precautionary measures to help Dubai and the UAE in their efforts to contain the spread of the pandemic and will continue to work closely with all government agencies in that respect.

It stated, “The DFSA is actively engaged with the regulated community in the Dubai International Financial Centre, DIFC, to assess the immediate and longer-term impact of this unprecedented global situation, and to intervene, as needed, to ensure financial stability and consumer protection.”

As the DIFC is a global hub for financial services, the DFSA is in close and regular contact with local and international supervisory bodies, reported WAM.

International regulatory standards have strengthened the resilience of the financial system over the past decade, the Authority noted.

The DFSA said that banks have higher levels of capital and liquidity now than in previous times, adding that this also includes capital and liquidity buffers that were specifically designed to be used for situations such as the coronavirus pandemic.

“The DFSA’s investments in regulatory technology and digitalisation have allowed better functionality as many firms moved to remote working arrangements,” the statement said, adding, “DIFC markets, including the equities and the bond platforms of Nasdaq Dubai and the commodity market of the Dubai Mercantile Exchange, continue functioning ordinarily and efficiently. The DIFC markets’ structures have demonstrated operational strength and efficiency in this current environment, despite historic volatilities.”

The DFSA highlighted that the current circumstances can increase financial institutions’ vulnerability to cyberattacks, phishing attempts and fraud. The DFSA continues to encourage the DIFC regulated community to exercise vigilance in that respect.

Firms in the DIFC firms are called to register to use the DFSA Cyber Threat Intelligence Platform, TIP, and make use of the cyber threat information available on TIP to enhance their cybersecurity.

The DFSA is well prepared to consider all appropriate measures aimed at supporting the financial and operational resilience of financial institutions and markets in the DIFC.

The Authority affirmed that it will also back all actions by the UAE and the Dubai Governments to support the UAE economy, and actions by the Central Bank of the UAE to ensure financial stability in the UAE.

It added that it is working closely with the DIFC Authority on targeted, non-regulatory measures to support the DIFC community.

The statement said, “As we have learned from our work in cyber resilience, public-private partnerships will provide the best path for solutions to this issue. The measures are vital to ensuring that the UAE and the DIFC, along with other markets around the globe, can recover when the current situation eventually passes.”