James Denseiow

Hidden behind a news cycle understandably dominated by the fallout of the Presidential election and the continued Coronavirus carnage was the revelation that the USA had experienced the ‘worst ever hack’ of its Government. Starting in July of this year more than 40 government agencies, thinktanks, nongovernmental organizations and IT companies were infiltrated by the hackers.

The attack, due to its nature, scale and sophistication has been strongly linked to Russian operatives and poses question as to the rules and norms of cyberwar in the modern age. In essence how does deterrence operate, if at all, when a nuclear armed state spends relatively small resource on a clandestine attack that is hard to prove origin of upon another nuclear armed state?

The scale of the attack and its objectives remain unclear. What is known is that whilst a lot of the cyber threats were associated with the US election itself, hackers managed to access a piece of software known as ‘SolarWinds’ which would then be updated throughout computers in the US Government. By attacking upstream, the hackers could then enter the systems unknowingly of huge parts of the US government.

Multiple office networks are reported to have been compromised including the treasury and commerce departments and Homeland Security. The subtle nature of the attack and the delay in detection means that the window for influence for the hackers is substantial. What were they trying to do? Steal information? Harvest compromising intelligence about individuals that would be used to bribe them. Or perhaps even more nefariously delete or change information.

The Office of Personnel Management was hacked, the private details of many government employees were potentially accessed. These details are reserved for those who have undergone security vetting and are incredibly sensitive. Indeed, the almost infinite options make it hard to narrow down and test. One digital expert speculated one scenario of what would happen if the hackers accessed the health records of Americans and changed the blood types of individuals held on record. Imagine the carnage and danger to life and livelihoods that would ensue.

Yet States who would never dream of a physical attack on the US feel that in the cyber domain they have both comparative advantage; compare the costs of running a hacking outfit versus maintaining an aircraft carrier battle group; and can exploit the lack of rules and regulations that govern this most modern method of conducting conflict through other means.

President Trump has been quiet when it comes to the hack, but President-elect Biden has already set out his stall on pushing back against cyberattacks. “Those who are responsible are going to face consequences for it,” said Biden chief of staff Ron Klain. “It's not just sanctions. It’s also steps and things we could do to degrade the capacity of foreign actors to repeat this sort of attack or, worse still, engage in even more dangerous attacks."

We could be entering an era in which the sensitivities and awareness around cyber offense and defensive moves could be considered hostile acts in ways that translate to more conventional actions such as sanctions or even conflict itself. The UK via its ‘Integrated Operating Concept’ have already set out how they believe that conflict is increasingly manifest through competition below the level of war. Cyberwar very much fits into this category and in a highly connected world where there are more smartphones per capita than toilets the chances of this escalating into the new normal of international relations are very real.

The New York Time’s David Sanger describes cyberattacks as ‘the perfect weapon’ explaining that “in less than a decade, they have displaced terrorism and nuclear missiles as the biggest immediate threat to international security and to democracy”. Perhaps the SolarWinds hack, considering the scale and the growing realisation as to the potential damage caused, will lead to a more global conversation around what the rules are around this threat.

Could a Biden administration whilst committing itself to pushing back on those who would attempt to infiltrate US networks, also push for a multilateral mechanism to agree on what the rules of this new game are? In the past years cyber-attacks have played a critical role in undermining the Iranian nuclear programme, so there should be no pretence that the US is an uninvolved party in this new era of warfare. Whilst it is a cliché there can be little doubt that the SolarWinds attack reveals a planet at a crossroads around an understanding and governance of this 21st century weapon system.

By : James Denseiow

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.