Treasury group unveils guidance for financial sector on cloud adoption | FedScoop<\/title> <meta name=\"description\" content=\"Regulators from Treasury, CFPB and OCC say the resources will especially help small banks that adopted cloud practices \u201cbefore they were ready.\u201d\"> <link rel=\"canonical\" href=\"https:\/\/fedscoop.com\/treasury-working-group-banks-cloud-adoption-cfpb-occ\/\"> <meta property=\"og:locale\" content=\"en_US\"> <meta property=\"og:type\" content=\"article\"> <meta property=\"og:title\" content=\"Treasury group unveils guidance for financial sector on cloud adoption\"> <meta property=\"og:description\" content=\"Regulators from Treasury, CFPB and OCC say the resources will especially help small banks that adopted cloud practices \u201cbefore they were ready.\u201d\"> <meta property=\"og:url\" content=\"https:\/\/fedscoop.com\/treasury-working-group-banks-cloud-adoption-cfpb-occ\/\"> <meta property=\"og:site_name\" content=\"FedScoop\"> <meta 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readability=\"0.82\"> <button class=\"stickybar__close js-stickybar-close\" aria-controls=\"stickybar\"> <svg class=\"icon icon--close\" width=\"21\" height=\"22\" viewBox=\"0 0 21 22\" fill=\"none\"><path d=\"m.822.518-.805.805L9.695 11 .017 20.678l.805.805 9.678-9.678 9.677 9.678.806-.805L11.305 11l9.678-9.677-.806-.805-9.677 9.677L.822.518Z\" fill=\"currentColor\" \/><\/svg> <span class=\"visually-hidden\">Close<\/span> <\/button> <\/section>\n<article class=\"single-article content\">\n<div class=\"single-article__container js-single-article-content\">\n<header class=\"single-article__header \" readability=\"25.785714285714\">\n<div class=\"single-article__header-content\" readability=\"31.733333333333\">\n<p> Regulators from Treasury, CFPB and OCC say the resources will especially help small banks that adopted cloud practices \u201cbefore they were ready.\u201d <\/p>\n<\/p><\/div>\n<div class=\"single-article__cover-wrap\">\n<figure class=\"single-article__cover\"> <img 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https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/07\/treasury-group-unveils-guidance-for-financial-sector-on-cloud-adoption-2.jpg?resize=252,168 252w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/07\/treasury-group-unveils-guidance-for-financial-sector-on-cloud-adoption-2.jpg?resize=505,337 505w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2024\/07\/treasury-group-unveils-guidance-for-financial-sector-on-cloud-adoption-2.jpg?resize=1012,675 1012w\" sizes=\"(max-width: 1012px) 100vw, 1012px\"><figcaption> The US Treasury Department building is seen in Washington, DC, January 19, 2023. (Photo by SAUL LOEB\/AFP via Getty Images) <\/figcaption><\/figure>\n<\/p><\/div>\n<\/header>\n<div class=\"single-article__content\">\n<div class=\"single-article__content-inner has-drop-cap\"> <html readability=\"34.987135135135\"><body readability=\"72.176559737307\"><\/p>\n<p>The Treasury Department and an industry-led nonprofit on Wednesday released secure cloud adoption guidance for financial institutions, the <a href=\"https:\/\/fedscoop.com\/treasury-holds-first-meeting-of-steering-group-for-financial-sector-cloud-adoption\/\">culmination of a year-long effort<\/a> that the agency\u2019s deputy secretary called \u201ccritically important to our work on cybersecurity.\u201d<\/p>\n<p>The suite of resources <a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/jy2467\">released by Treasury and the Financial Services Sector Coordinating Council<\/a> as part of the public-private <a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/jy1503\">Cloud Executive Steering Group<\/a> is intended to address gaps called out in the department\u2019s <a href=\"https:\/\/home.treasury.gov\/system\/files\/136\/Treasury-Cloud-Report.pdf\">February 2023 report on the industry\u2019s use of cloud services<\/a>. <\/p>\n<p>During a press briefing in Washington, D.C. to unveil the cloud guidance, Deputy Treasury Secretary Wally Adeyemo said the steering group\u2019s work with cloud providers \u201cis a demonstration that we have the ability to work beyond just the financial system.\u201d<\/p>\n<p>Treasury has grown \u201cincreasingly concerned\u201d with cyber threat actors \u201clooking to make money or state actors seeking to target our financial systems,\u201d Adeyemo said. The steering group\u2019s work with cloud providers on these resources \u201cput us in a position where we can go provide information to financial institutions and also the regulators, but also work collaboratively with these institutions.\u201d<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>The resources for financial institutions include a roadmap for comprehensive or hybrid cloud adoption, best practices for third-party risks tied to cloud service providers, an assessment of existing oversight authorities for cloud providers, and strengthened transparency and monitoring of cloud services for \u201csecurity by design\u201d practices.<\/p>\n<p>Additionally, the Office of the Comptroller of the Currency led work on establishing \u201ca common lexicon\u201d for cloud discussions among regulators and financial institutions, while the Consumer Financial Protection Bureau guided resource production on information sharing and coordination.<\/p>\n<p>Much of the guidance unveiled Wednesday was produced with small financial institutions in mind, regulators and Financial Services Sector Coordinating Council leaders said during the event. Todd Conklin, deputy assistant secretary for Treasury\u2019s Office of Cybersecurity and Critical Infrastructure Protection and the department\u2019s chief artificial intelligence officer, noted that some large banks interviewed as part of the steering group\u2019s work had hundreds of cloud technologists on staff and were able to take a \u201cjudicious\u201d approach to cloud adoption.<\/p>\n<p>But the smallest financial institutions were often at the mercy of third-party vendors and \u201cforced\u201d into full-scale cloud adoption \u201cbefore they were ready,\u201d Conklin said.<\/p>\n<p>\u201cWhat we\u2019re releasing today in this batch of work really is aimed at our smallest financial institutions who are 100% cloud and yet are really still struggling,\u201d added Conklin, who previously <a href=\"https:\/\/cyberscoop.com\/treasury-department-ai-cyber-fraud-threats-small-banks\/\">warned of small banks\u2019 limitations in using AI<\/a> to ward off cyber threats.<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>CFPB Director Rohit Chopra echoed Conklin\u2019s concerns about small financial institutions, particularly with regard to \u201cbargaining leverage\u201d that banks and credit unions of that size lack \u201cto make sure their systems can be turned on quickly, just like the biggest names on Wall Street.\u201d <\/p>\n<p>Chopra also raised concerns about the current cloud market, which is dominated by a few major service providers tied to a handful of Big Tech companies. Chopra wondered aloud whether federal agencies should be \u201cenhancing some of the regulations\u201d covering top cloud providers, while also crediting the participating financial institutions in providing a roadmap to secure services.<\/p>\n<p>\u201cJust imagine what will happen to families and businesses in this economy if they cannot make payments, they cannot withdraw money, or they cannot do what they need to do in their daily lives,\u201d he said. \u201cWe need to make sure that our cloud infrastructure is resilient, that it is always working, and that an outage does not create a massive financial crisis.\u201d<\/p>\n<p><\/body> <\/p>\n<footer class=\"single-article__footer\" readability=\"3.6917293233083\">\n<div class=\"author-card\" readability=\"15\">\n<div class=\"author-card__avatar\">\n<figure class=\"author-card__image-wrap\"> <img data-recalc-dims=\"1\" decoding=\"async\" class=\"author-card__image\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2024\/07\/treasury-group-unveils-guidance-for-financial-sector-on-cloud-adoption-1.jpg?w=640&ssl=1\" alt=\"Matt Bracken\"> <\/figure>\n<\/p><\/div>\n<p><h4 class=\"author-card__name\">Written by Matt Bracken<\/h4>\n<p> Matt Bracken is the managing editor of FedScoop and CyberScoop, overseeing coverage of federal government technology policy and cybersecurity. Before joining Scoop News Group in 2023, Matt was a senior editor at Morning Consult, leading data-driven coverage of tech, finance, health and energy. He previously worked in various editorial roles at The Baltimore Sun and the Arizona Daily Star. 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{"id":4507,"date":"2024-07-17T14:12:02","date_gmt":"2024-07-17T19:12:02","guid":{"rendered":"https:\/\/cyberscoop.com\/?p=81037"},"modified":"2024-07-17T14:12:02","modified_gmt":"2024-07-17T19:12:02","slug":"treasury-group-unveils-guidance-for-financial-sector-on-cloud-adoption","status":"publish","type":"post","link":"https:\/\/ddi.mohflo.net\/index.php\/2024\/07\/17\/treasury-group-unveils-guidance-for-financial-sector-on-cloud-adoption\/","title":{"rendered":"Treasury group unveils guidance for financial sector on cloud adoption"},"content":{"rendered":"