DFSA Publishes 2024 Cyber Thematic Review Assessing Cybersecurity In DIFC Firms

The Dubai Financial Services Authority (DFSA), which regulates financial services in the Dubai International Financial Centre (DIFC), recently held its Annual Outreach session. This event attracted over 500 participants from the financial services industry, highlighting the DFSA's dedication to fostering collaboration, innovation, and compliance within the sector.

During the session, the DFSA introduced its 2024 Cyber Thematic Review. This review evaluates the cybersecurity maturity and resilience of firms operating in and from DIFC. It aligns with both UAE and Dubai's cybersecurity strategies, reinforcing the DFSA's commitment to improving cybersecurity standards across the financial sector.

The number of Authorised Firms has increased by 25% from 2022 to 2024. The review noted improvements in firms' cybersecurity maturity within DIFC. It assessed progress in cyber risk management since the last report in 2022, identifying good practices, areas for improvement, and recommendations for enhancing defences against cyber threats.

The review revealed that 80-90% of firms have adopted governance best practices to ensure accountability and compliance as per DFSA rules. Additionally, firms reported implementing 90% of fundamental best practices for secure system operations. Resilience remains around 80%, reflecting improvements in maintaining system functionality despite disruptions.

The Annual Outreach also included updates from DFSA’s Policy, Enforcement, and Authorisation Divisions. These updates provided insights into regulatory developments, enforcement priorities, and licensing enhancements aimed at simplifying compliance processes.

Innovation and Technology Discussions

Sessions focused on supervision covered topics like Innovation and Technology, Prudential measures, Business Conduct, and Financial Crime Conduct. Discussions emphasised promoting technological innovation while ensuring strong measures against financial crime such as anti-money laundering and combating terrorism financing.

Justin Baldacchino, Managing Director of Supervision at DFSA, stated: "Today’s Annual Outreach has been a pivotal step in reinforcing trust, transparency, and collaboration within the financial sector. Cybersecurity is central to the DFSA’s mission to protect the financial ecosystem within the DIFC, and the findings of our latest Review show encouraging progress, but they also highlight areas where firms must further strengthen their defences. I would like to thank all our industry participants who joined this year’s Annual Outreach – together, we will continue to strengthen the future of finance with DIFC."

The event underscored DFSA's ongoing efforts to enhance trust within DIFC's financial ecosystem through improved cybersecurity measures. Participants were encouraged by progress but reminded of areas needing further attention to bolster defences against evolving threats.

With inputs from WAM