The Shared Infrastructure Program (SIP) is the Annual Mandatory Compliance conducted by SWIFT (Society for Worldwide Interbank Financial Telecommunication) S C Belgium for all the SWIFT Shared Infrastructures (SWIFT Service Bureaux) in the world to make sure that the Global Standards are compliant by all providers in a consistent manner.
Lanka Financial Services Bureau Ltd (LFSBL)has been a SWIFT Certified Shared Infrastructures provider since 2013 and continuously meet the enhanced stringent standards year on year. The continuous certification of the LFSBL exemplifies a significant stride towards strengthening levels of resilience, quality assurance, cyber security, reliability, Business Continuity, Services by SWIFT Certified Technical Specialists and On-boarding specialists and Change management towards consolidating the SWIFT payments system to the nation’s financial sector. The compliance program is based on the specified standards in the Provider Security Control Framework (PSCF), which compliments and aligns seamlessly with SWIFT’s Customer Security Control Framework (CSCF). These stringent standards underscore SWIFT’s broader strategy to ensure the safety and integrity of its global financial messaging system, offering both mandatory and advisory security controls that financial services institutions are required adopt to safeguard their SWIFT-related operations and payment systems at large.
From the perspective of Sri Lankan Banking and financial services providers and their customers, the standards reflect the following key areas:
- Assurance of Security and Trust
For existing service providers and their clientele, this partnership guarantees a secure, certified, and robust infrastructure. SWIFT’s rigorous standards enhance confidence in the safety of transactions, fostering trust among stakeholders. This assurance is critical in a digital-first global banking ecosystem, where secure messaging systems are foundational to financial stability.
- Invitation to Secure and Cost-Effective Engagement
The partnership serves as an invitation for financial institutions, including banks and other service providers, to leverage cost-effective, convenient, and secure connectivity to SWIFT’s systems. This reduces the operational complexities associated with international financial communication, encouraging greater participation by Sri Lankan institutions in global markets. It positions the local banking sector as an effective and efficient competitive player in cross-border financial transactions.
- Demonstration of Expertise and Compliance
The partnership reflects LFSBL’s in-house proficiency through its Certified Specialists. LFSBL employs two Onboarding Specialists and two Interface Specialists, all of whom are SWIFT-certified. These experts ensure seamless integration and operational support in line with SWIFT’s stringent global technology, security, and administrative standards. This capability signals LFSBL’s readiness to serve as a hub of expertise for other local institutions seeking to comply with SWIFT’s requirements.
The Framework of Security Controls
The PSCF and CSCF together encompass 12 broad categories of security controls, broken down into approximately 60 specific criteria. These include:
- Restricting Internet Access and Protecting Critical Systems
- Reducing Attack Surfaces and Mitigating Vulnerabilities
- Managing Identities and Separate Privileges
- Detecting Anomalies Activities in Systems and Transactions
- Planning Incident Response and Information Sharing
These measures comprehensively address both preventative and responsive security protocols, enabling institutions to mitigate risks effectively.
Stringent Compliance forGlobal Recognition
LFSBL undergoes an annual global audit to validate its compliance with SWIFT’s stringent controls. This external validation is a prerequisite for achieving and maintaining SWIFT certification, with 100% compliance necessary to secure a listing in SWIFT’s global registry. This certification positions LFSBL as a reliable financial services provider aligned with global standards, thereby elevating the reputation of Sri Lanka’s banking and financial sector. Any significant and critical deviations will result in immediate suspension on new on-boarding activities and if the organization is unable to complete the remedies for deviations, then it will be escalated to the stage of ‘termination’ of the connection.
Resultant Benefits to Sri Lanka
The SWIFT Certification of LFSBL enhances the resilience and credibility of Sri Lanka’s financial services providers, fostering customer trust and global competitiveness. It attracts international partnerships, encourages innovation, and bolsters the country’s financial sector as a key player in global markets, ensuring long-term growth and stability.
LFSBL saves a significant volume of foreign exchange to the country, comparing to the direct connectivity options to the institutions and the local banking & financial community enjoys the aforementioned benefits, including the relatively low transactional cost.