01-07-2025
DFSA Highlights Rising Digital Threats and Global Oversight Push in New Risk Report
The Dubai Financial Services Authority (DFSA) has spotlighted the rising complexity of cyber and AI risks in its latest report, underscoring the urgent need for global regulatory collaboration amid accelerating digital innovation.
Released on Monday, the report titled 'Cyber and Artificial Intelligence Risk in Financial Services: Strengthening Oversight Through International Dialogue' outlines the increasing convergence of cyber threats, AI adoption, and the potential disruption from quantum computing. It comes on the heels of DFSA's inaugural Cyber and AI Risk Regulatory College, held in May 2025, which convened 70 senior representatives from 18 global financial authorities. 'Digital risks are no longer peripheral — they are fast becoming systemic,'
said Justin Baldacchino, Managing Director of Supervision at DFSA. He emphasized the growing international consensus on evolving regulatory approaches to meet the pace of innovation.
The report delves into the cybersecurity landscape, emerging AI risks, and the implications of quantum computing on current security frameworks. It notes a surge in sophisticated cyberattacks and stresses the urgency of preparing for a post-quantum cryptography era as traditional encryption methods face obsolescence.
AI's rapid integration into financial systems also raises governance concerns, prompting calls for stronger oversight, transparency, and third-party risk management.
Herman Schueller, DFSA's Director of Innovation and Technology Risk Supervision, stressed the value of cross-border cooperation, stating that 'open dialogue is essential to adapting oversight practices in a fast-evolving digital environment.'
The DFSA report reflects a growing momentum among global regulators to strike a balance between safeguarding financial stability and supporting responsible technological innovation.
News Source: Emirates News Agency
