Economy

BoZ Governor Says Financial Sector a Key Target by Criminals

Bank of Zambia governor Dr Denny Kalyalya has revealed that the financial services sector is a key target by criminals owing to the large amount of funds it deals with.

During a workshop on “Cyber Security in the Financial Services Sector” being jointly conducted by the Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI) and the Bank of Zambia in Lusaka today, Dr Kalyalya said this called for strict measures to combat cyber crimes that target the financial sector.

“For this same reason, the financial services sector has to also deal with other types of risks, which among others include, fraud, extortion, money laundering, illicit financial flows, market manipulation, data theft, and currency attacks. With statistics showing an increase of cyber-attacks in the financial sector, the importance of ensuring that our institutions are cyber resilient cannot be over-emphasized,” Dr Kalyalya said. “…the financial services sector has to see cybersecurity for what it is, a large scale operational risk deserving the utmost attention and thus develop the necessary systems and cultures throughout the sector to deal with this risk. Key to the development and operation of these systems and cultures is the need to nurture talent capable of addressing cyber security threats through prompt detection, investigation, reporting, prosecution and prevention.”

He said law enforcement agencies must come up with innovative ways of quickly tracking down those behind cyber crimes.

“Let me also emphasize that cyber risks should be viewed from an enterprise-wide perspective.  ICT, Security, Operations, Credit Control, Anti-Money Laundering and Fraud Investigation departments need to break down the various silos to facilitate faster detection and prevention of cyber financial crimes.  No single department or function can be an island in this battle. In the same vein, no bank or financial institution can be an island. One financial institution brought down by a cyber-attack would impact other banks and could ultimately destabilize the entire financial sector. It is for this reason that I call upon all CEOs here present to ensure that Cyber Security is entrenched in our day-to-day operations and strategic plans,” said Dr Kalyaya.

“I am aware that other countries have set up Computer Incident Response Teams (CIRTs) for various industries, including the Financial Sector. It is high time that we seriously begin to consider setting up a financial sector CIRT in Zambia.  I believe that the CIRT would, not only assist in ensuring that all financial institutions are collaborating and working as one in mitigating cyber risks, but also enable information sharing. I am therefore calling upon Bankers Association of Zambia to work with Bank of Zambia to ensure that this is achieved.”

2 Comments

  1. Ck

    Comment Ba DANNY , Iwas expecting you to talk about the causes of the weakening of the kwacha and the ways to strengthen it elyo mulelanda fye fimbi kwati muli mu bwalwa TWEBE IFILECITIKA KULI KWACHA . PLEASE UPDATE THE NATION

  2. Victimized Zambian

    Denny Kalyalya must be relieved of his duties for him to account for the gross financial I’ll misconduct,mwhich he has failed to address. He ought nit to be allowed to be just making statements yet he can not act to arrest or stop th e financial crimes. But he is instead alleged to be conspiring and / or a beneficiary of the financial crimes.. We have evidence about Sikazwe, a BOZ lawyer, who conspired with other lawyers in forgery, making and uttering false documents upon the Constitutional Court, with intentions to defraud and commit felonies , after they allegedly benefited from proceeds of illicit enrichment by numerous money laundering money lending financial services. They have been tight lipped after reporting such gross financial misconduct I flirted on the Zambia population for over a period of 10 years..The law must take its course. Both Kalyalya and Sikazwe must account for the fraud committed upon then Cincourt, as well as for allegedly benefiting from illicit enrichment and failing to supervise Fianancial misconduct.

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