New York delays controversial financial cybersecurity law
The New York State Department of Financial Services announced on Wednesday that it will delay a deadline for banks and insurers who operate in the state to meet new cybersecurity laws. The regulation is the first of its kind and was introduced after cyber criminals in Bangladesh used the SWIFT banking network to request nearly $1bn from an account in the Federal Reserve Bank of New York. The rules, proposed by governor Andrew Cuomo, would mandate banks, insurers, and other financial service institutions to maintain a cybersecurity programme and designate a CIO to enforce it.
Dive Brief:

The New York State Department of Financial Services announced Wednesday that it will delay a deadline for banks and insurers doing business in the state to meet new cybersecurity rules, Reuters reports.

The agency said it will publish a new version of its cybersecurity rules in the New York State Register on Dec. 28, but did not indicate what changes will be made. The new effective date is expected to be March 1, 2017, rather than the original deadline of January 1, 2017, Reuters sources said.

Banks and insurers began asking for an extension of the deadline and other changes since the rules were introduced in September.

Dive Insight:

U.S. lawmakers have grown more concerned about financial security after the Bangladesh heist in February, wherein cybercriminals used the SWIFT banking network to request nearly $1 billion from an account at the Federal Reserve Bank of New York.

The state regulation is one of the first of its kind in the U.S. If New York’s approach proves effective in holding banks accountable and improving cybersecurity practices in the financial services sector, other states may soon follow suit.

The new rules were proposed by New York Governor Andrew Cuomo in September. They would require banks, insurance companies and other financial services institutions regulated by the State Department of Financial Services to establish and maintain a cybersecurity program.

The regulation would also require regulated financial institutions to designate a CIO responsible for enforcing the cybersecurity program and additional requirements designed to help protect the "confidentiality, integrity and availability of information systems."