In a move that signals growing caution about penalties tied to customers’ personal data breaches, several Russian banks argue that turning data-leak fines into hundreds of millions of rubles would be excessive. The conversation centers on financial penalties that could overwhelm institutions already navigating a tighter regulatory environment. The stance, reported by RBC, emphasizes a preference for more measured sanctions tied to the scale and repetition of breaches rather than sweeping fines that could strain bank balance sheets.
Instead, a proposed framework from the National Financial Market Council outlines fixed penalties in the range of 15 to 30 million rubles. The exact figure would depend on the category of data affected and would apply in cases of repeated leaks by banking customers. This approach aims to create predictable liability while preserving room for banks to invest in prevention and remediation measures rather than facing punitive figures that could threaten liquidity or ongoing operations. The proposal reflects a broader shift toward tiered sanctions that can differentiate between the seriousness of the breach and the data involved, a move that resonates with risk managers across the sector.
Analysts and industry observers note that the emphasis should be on accountability for security controls. Banks have proposed that liability should be triggered primarily when a leak results from a failure to meet established information security requirements. In other words, the focus would be on whether institutions implemented and maintained the required safeguards, rather than assigning blame for every incident. To ease the transition, the industry asks for a grace period of one year to adapt to the new regime and to implement upgraded controls that can prevent or limit damage from future leaks. This timeline would give banks time to align policies, upgrade technologies, and train staff while maintaining customer protection as a core priority.
In tandem with these discussions, NSFR and representatives from credit institutions sent a formal letter to the Bank of Russia, the Ministry of Digital Development, and the Chairman of the State Duma Committee on State Building and Legislation. The communications underscore a collaborative approach, inviting regulators to work with the banking sector to refine definitions, clarify liability standards, and ensure that any regulatory measures are workable in practice. The letter also highlights the importance of leveraging modern security practices, incident response protocols, and ongoing auditing to demonstrate compliance and resilience against evolving cyber threats. The exchange reflects a shared objective: safeguarding customer data while maintaining stable access to financial services.
Crucial questions remain about senior leadership accountability. One proposed element calls for senior bank managers to face dismissal for up to a decade in cases of significant data leaks that reflect governance or control failures. Such measures would elevate governance standards and create strong incentives for boardrooms to prioritize cyber risk oversight. The industry is careful to balance these penalties with proportionate responses that can be justified by the breach’s impact and the bank’s prudent risk management practices. The debate also touches on the broader impact on customers, who rely on banks to protect sensitive information and to respond quickly and transparently when incidents occur.
Recent analyses from market researchers and risk experts note that the landscape of customer data exposure has evolved. In 2023, scrutiny intensified around the sheer volume of personal contact points and the number of phone numbers exposed in security incidents. The findings underscore the need for robust multi-layer defenses, rapid detection, and efficient notification protocols. The goal is not only to deter lax practices but to create a measurable, continuous improvement cycle for security programs. Stakeholders stress that any policy should incentivize proactive risk management, continuous monitoring, and meaningful remediation after breaches, all while maintaining the public’s confidence in the financial system. The discussions also reflect a broader trend toward harmonizing domestic rules with international best practices, ensuring that the Russian banking sector can demonstrate resilience and responsible data stewardship in a global context. Source: RBC coverage and industry briefings.