From: American Banker
by Chris Cumming and Marc Hochstein
Banks chartered in New York could soon be required to appoint chief information security officers and submit to quarterly tests of their systems’ vulnerabilities under a cybersecurity regime being considered by state regulator Benjamin Lawsky.
Those strict requirements appear in the Department of Financial Services’ sweeping, controversial proposal for regulating virtual currency businesses. Lawsky said this week he is thinking of using the cybersecurity provisions of the so-called BitLicense framework as a model for banks and insurance companies on his watch. Those rules would be far more stringent than any existing data-security regulations for financial institutions.
“They read like a consent decree for a company that has already been breached, investigated and found to be lacking in security measures,” said Jason Weinstein, a partner at Steptoe & Johnson and a former cybercrime prosecutor for the Department of Justice.
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