It is important to note that the recent incident with the Bangladesh Bank was not caused by a breach or compromise of the New York Fed’s systems. Regardless, the New York Fed has and is taking immediate steps to help strengthen the safety of global payments in light of the potential vulnerabilities that have been exposed in the payments chain. In conjunction with the Board of Governors, the New York Fed has taken a comprehensive look at its processes and has enhanced monitoring for certain jurisdictions and transaction types for customers.
We are also actively working on medium and long-term efforts to enhance the security of the global payments environment. We are working with the Bangladesh Bank, SWIFT and investigative bodies to deepen our shared understanding and draw lessons for private and public sector institutions. We are engaging in an international dialogue with central banks, regulators and industry groups on the broader issues of cybersecurity and the payments system. As this dialogue proceeds, we continue to take steps to ensure that our control environment keeps up with the evolving risks associated with providing these valued services.