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Cybersecurity And Banking

Cybersecurity has become banking regulators’ number one priority. Financial institutions have in their possession not only customer funds but important confidential customer information.  Starting with the Gramm-Leach Bliley Act in 2002, the U.S. government has imposed on financial institutions an obligation to develop comprehensive security and privacy programs, and as more stories emerge about hackers finding weaknesses in a company’s electronic system and obtaining private information, or even redirecting funds, the government is becoming more active in imposing security regulations requiring more safeguards for electronic information.  Most recently, the Federal Financial Institutions Examination Council released its Cybersecurity Assessment Tool, which assists an institution evaluate its cybersecurity risks and vulnerabilities.

Ally Law Security

The role of management in this area is to complete the evaluation process, implement mitigation processes and continue to oversee and monitor issues. In addition, management should provide an ongoing risk assessment to the board of directors. Cyber liability insurance may be appropriate for your institution.

To ensure your institution is meeting all government and best practice obligations in safeguarding its electronic information, meet with an attorney at an Ally Law member firm. This is a complex and rapidly changing area of law and government regulation, and what seemed adequate for your institution last year may be deficient this year. Ally Law member firms around the world know the applicable laws and regulations and can advise you on keeping your security system current and compliant.  For more information about our services in this area, contact us at yourally@ally-law.com.

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By Vorys, Sater, Seymour and Pease LLP.