Page 27 - NIBAF-Training Matters July - December 2022

responsibilities of various in financial services, SBP vision,
stakeholders, damage control, expectations and instruction for the IT & Cybersecurity Audit
forensic analysis and investigation digital journey, SBP digital
reports, security of personally onboarding framework, IT & Cyber security audits are a vital
identifiable information, customer Regulations for Digital Onboarding component of an organization’s
awareness, challenges faced by of Merchants, Mandatory and controls to protect information
financial institutions in Operational Digital Products, technology assets and defenses
implementation of controls, key Industry’s Learnings, Bottlenecks against data breaches and privacy
areas of concern for supervisors, and their solutions and various violations. These audits allow
opportunities for financial other aspects of SBP regulatory organizations to ensure integrity
institutions and lessons learnt in regime to promote and secure the identify security weaknesses and
recent cases. digitization process. Participants determine compliance of
shared their respective bank’s organizational practices comply
Going Digital in Pakistan’s experiences and challenges in the with significant
Financial Sector digitization initiatives and also policies/procedures, relevant laws
worked through a case study to
further build necessary capacity in and best practices in the areas. In
In the wake of the technological tackling related issues arising. order to bridge the gaps in the
evolution in the financial services skillset of Internal Audit officials of
landscape and changes in commercial banks in the field of IT
consumer behavior, Digital Central Bank issued and Cybersecurity, NIBAF
Financial Services have emerged Digital Currencies Islamabad developed a two-day
as a critical game changer. The course on IT & Cybersecurity Audit
stakeholders must have awareness Technological advancements, shift and conducted two iterations of the
of prevailing industry dynamics and towards paperless banking program at NIBAF-Karachi
regulatory regime. Hence, one-day transition, increasing preferences (October 20-21, 2022 & December
training course on “Going Digital in of customers for digital payments 12-13, 2022) which were attended
Pakistan’s Financial Sector” was are all prompting central banks by participants from commercial
designed and conducted on around the globe to assess digital banks and SBP. Mr. Ajab Ali,
November 9, 2022 at NIBAF alternatives to the hard currency. Deputy Director, Banking
Karachi to enable the participants Around 90 percent of the world’s Supervisions Department, SBP,
understand the components of central banks are pursuing Central who is a Certified Information
digital financial services, effective Bank Digital Currency (CBDC) Systems Auditor (CISA) with over
digital banking strategies, products projects although most remain at ten years of professional
and digital journey of customers. the exploratory phase. This new experience in the field delivered the
The training was delivered by Mr. course was designed to give training. Given his expertise in
Farhan Shoukat, Joint Director, participants an overview of CBDCs, Independent IS and Cybersecurity
Banking Supervision Department, its pros & cons from users and Audit and related risk assessment
SBP. Mr. Farhan is a Certified central banks’ perspective, use of in financial institutions, Payment
Professional Trainer from IAPPD CBDCs to enhance the efficiency of System Operators, Payment
Global. He has over 12 years of cross-border payments, regulatory System Providers, Electronic
experience in Banking Supervision considerations and implications for Money Institution and FinTechs,
and has been involved in various financial stability, bank Mr. Ali delivered arich presentation
key policy initiatives taken by SBP intermediation and financial on critical areas in such audits. He
with respect to Digital Banking. He inclusion. Syed Hassan Talal, further discussed Audit of Critical
gave an overview on the Digital Deputy Director, Banking Software applications and Alternate
Financial Landscape in Pakistan Supervision Department, SBP with Delivery Channels, Project
and need of digital transformation areas of expertise being Management Offices, IT
Cryptocurrencies, Procurement and Technology Risk
Blockchain & Fintech Management. This program has
been highly appreciated by the
conducted the session
and gave an overview of participants with request to
the Digital Assets Market. conduct more programs on the
topic.
He further discussed
global case studies and
lessons learnt by
regulators, Data security
& Privacy and deliberated
on the CBDC case for
Pakistan.