NY DFS 23 NYCRR 500 — New York Cybersecurity Regulation
- ClassificationCategoryOperational ResilienceDomainFinancial Services RegulationFramework FamilyOther
- Regulatory ContextTypeRegulationLegal InstrumentRegulationSectorFinancial SectorIndustryFinancial Services
- Region / PublisherRegionNorth AmericaRegion DetailNew YorkPublisherNew York State Department of Financial Services
- VersioningVersion23 NYCRR Part 500 (2023 Amendment 2)Effective DateNovember 1, 2023Issue DateNovember 1, 2023
- AdoptionAdoption ModelRegulatory ComplianceImplementation ComplexityHigh
- Official ReferenceOpen Link in New TabSource
License included / downloadable: Yes
The NYDFS Cybersecurity Regulation is publicly available through the New York Department of Financial Services.
Framework text is licensed by its publisher and is included only where stated above.
Overview
NY DFS 23 NYCRR 500 is a cybersecurity regulation that establishes minimum security requirements for financial institutions operating under New York State jurisdiction to safeguard sensitive customer data and ensure resilient cyber risk management. The regulation focuses on protecting the confidentiality and integrity of information systems that support financial operations.
Issued by the New York State Department of Financial Services (NYDFS), 23 NYCRR 500 applies to banks, insurance companies, and other covered entities regulated by NYDFS. The rule mandates cybersecurity controls, including risk assessments, incident response planning, audit trails, multi-factor authentication, and third-party service provider oversight, reflecting the sector’s focus on operational resilience and regulatory compliance.
Organizations implement 23 NYCRR 500 by developing a cybersecurity program aligned with its requirements, appointing a Chief Information Security Officer (CISO), conducting regular risk assessments, and maintaining documentation to support regulatory examinations. The regulation complements other cybersecurity standards such as NIST and ISO, and serves as a foundational component of compliance programs within the financial sector.
Why it Matters
NY DFS 23 NYCRR 500 establishes a rigorous cybersecurity baseline that helps financial institutions safeguard information systems and meet regulatory obligations.
Key benefits include:
- Strengthen cybersecurity governance
Support the development of security oversight by requiring leadership accountability and formal risk assessments.
- Enhance regulatory alignment
Promote consistency with state-mandated requirements, ensuring financial organizations maintain compliance with New York regulatory expectations.
- Improve incident response readiness
Mandate incident response planning and reporting, accelerating threat detection, containment, and required communications during cyber events.
- Boost third-party risk management
Require oversight of service providers to reduce supply chain vulnerabilities and ensure vendors meet appropriate security standards.
- Increase audit and examination preparedness
Standardize documentation and processes to simplify compliance validation and facilitate smoother regulatory inspections and audits.
How it Works
The NY DFS 23 NYCRR 500 regulation structures its requirements into a series of regulatory mandates and cybersecurity program elements specific to financial services organizations. It establishes governance domains such as risk assessment, access controls, encryption, incident response, and reporting obligations. The framework requires ongoing board involvement, continuous risk management processes, and the implementation of defined security controls and policies tailored to the unique risks faced by covered entities.
Organizations implement NY DFS 23 NYCRR 500 by conducting regular risk assessments, developing and maintaining cybersecurity policies, instituting technical and administrative controls, and ensuring employee training. Compliance activities include monitoring security practices, maintaining audit trails, managing incident response plans, and preparing for annual certification submissions to the New York Department of Financial Services (DFS). Ongoing compliance monitoring and adjustments are essential to address evolving threats and regulatory expectations.
With SmartSuite, organizations operationalize NY DFS 23 NYCRR 500through integrated control libraries, a centralized risk register, automated compliance tracking, and automated evidence collection. SmartSuite supports policy governance and facilitates remediation workflows, while reporting dashboards aid in audit readiness and the effective management of ongoing cyber risk and regulatory obligations.
Key Elements
- Cybersecurity Program Structure
Specifies requirements for developing and maintaining a documented cybersecurity program addressing information security risks.
- Governance and Oversight Functions
Establishes accountability through designated roles, such as the Chief Information Security Officer, and regular board reporting.
- Risk Assessment Processes
Describes structured evaluation and analysis of cybersecurity threats and vulnerabilities relevant to business operations.
- Access and Authentication Controls
Defines mechanisms for securing systems and data, including requirements for multi-factor authentication and access management.
- Incident Response and Recovery
Outlines protocols for detecting, reporting, and recovering from cybersecurity incidents, ensuring organizational resilience.
- Audit Trail and Monitoring
Provides mandates for monitoring activity, maintaining logs, and establishing audit trails of critical systems and data.
- Third-Party Risk Management
Organizes controls addressing cybersecurity due diligence and oversight for external service providers with access to sensitive information.
Framework Scope
NY DFS 23 NYCRR 500 is adopted by banks, insurance firms, and financial service providers subject to New York State regulation. The standard governs the confidentiality, integrity, and availability of information systems supporting financial operations, and is typically implemented when meeting cybersecurity regulatory obligations and supporting compliance oversight and operational resilience within the financial sector.
Framework Objectives
NY DFS 23 NYCRR 500 sets forth minimum cybersecurity standards to strengthen risk management and regulatory compliance for financial institutions.
Safeguard sensitive customer data and maintain the confidentiality of financial information
Enhance risk management practices through continuous cybersecurity assessment and oversight
Strengthen governance and accountability with executive responsibility for security controls
Support regulatory compliance by establishing clear documentation and audit processes
Improve operational resilience against cyber threats and disruptions
Enable ongoing data protection through policies and continuous monitoring NY DFS 23 NYCRR 500 is a New York state regulation for financial services, requiring organizations to implement and maintain cybersecurity programs. It aligns with frameworks like NIST Cybersecurity Framework, GLBA Safeguards Rule, and FFIEC CAT.Regulated entities use it primarily for meeting legal compliance, managing operational risk, and demonstrating resilience to state regulators.
Framework in Context
NY DFS 23 NYCRR 500is a New York state regulation for financial services, requiring organizations to implement and maintain cybersecurity programs. It aligns with frameworks like NIST Cybersecurity Framework, GLBA Safeguards Rule, and FFIEC CAT. Regulated entities use it primarily for meeting legal compliance, managing operational risk, and demonstrating resilience to state regulators.
Common Framework Mappings
NY DFS 23 NYCRR 500 is often mapped to other leading cybersecurity and regulatory frameworks to simplify compliance, enhance risk management, and improve alignment with industry best practices in the financial services sector.
Mapped frameworks include:
CIS Critical Security Controls
FFIEC Cybersecurity Assessment Tool
Gramm-Leach-Bliley Act (GLBA) Safeguards Rule
ISO/IEC 27001
NIST Cybersecurity Framework
NIST SP 800-53
PCI DSS
SOC 2
How SmartSuite Supports US - NY DFS 23 NYCRR500 2023 Amd 2
SmartSuite provides the system for managing controls, evidence, mappings, assessments, and reporting.
Centralize controls, evidence, and audit workflows to stay continuously SOC 2–ready.
Regulation Requirement Library
Track DFS 500 requirements with owners, scope, and implementation evidence.
Risk Assessments and Governance Reporting
Run periodic risk assessments and maintain board/management reporting evidence.
Control Testing and Evidence Capture
Schedule testing, monitoring, and evidence capture for key cybersecurity controls.
Incident Escalation and Reporting
Track events, escalation decisions, and reporting readiness with full documentation.
Vendor Due Diligence and Ongoing Monitoring
Manage vendor due diligence, contract requirements, and ongoing monitoring.
Audit and Examination Reporting
Report readiness, gaps, and evidence coverage for audits and regulator exams.
Related frameworks
Basel III is an international banking regulation framework that strengthens banks' capital, liquidity, and risk management to reduce systemic risk.
CIS Controls v8.1 provides prioritized, practical security actions to help organizations mitigate common cyber threats and strengthen defenses.
DORA is an EU regulation requiring financial firms to manage ICT risks, report incidents, test security, and oversee third-party providers.
The FFIEC Cybersecurity Assessment Tool helps U.S. financial institutions assess cybersecurity preparedness and manage cyber risk.
The GLBA Safeguards Rule requires financial institutions to implement security programs to protect consumer financial information.
ISO/IEC 27001:2022 is an international ISMS standard that helps organizations manage information security risks and protect data.
Frequently Asked Questions For NY DFS 23 NYCRR 500 (New York Cybersecurity Regulation)
NY DFS 23 NYCRR 500 establishes minimum cybersecurity requirements for financial institutions regulated by the New York State Department of Financial Services. Its primary purpose is to protect the confidentiality, integrity, and availability of sensitive nonpublic information and financial systems against evolving cyber threats.
NY DFS 23 NYCRR 500 is mandatory for entities regulated by NYDFS, including banks, insurance companies, and certain financial service providers operating in New York. There are limited exemptions, but most covered entities must comply with all applicable sections of the regulation.
The regulation applies to all “covered entities” overseen by NYDFS, such as state-chartered banks, licensed lenders, insurance companies, trust companies, and mortgage brokers. Third-party service providers that handle sensitive data on behalf of these entities are also subject to specific oversight requirements.
Entities must implement a comprehensive cybersecurity program, conduct regular risk assessments, ensure access controls and data encryption, deploy multi-factor authentication, maintain audit trails, and develop incident response and business continuity plans. Oversight of third-party service providers and regular cybersecurity training are also required.
Implementation involves developing formal cybersecurity policies and procedures, appointing a qualified Chief Information Security Officer (CISO), mapping controls to regulatory requirements, and establishing documentation to evidence compliance. Regular testing, risk-based security controls, and board-level reporting are fundamental steps in the process.
NY DFS 23 NYCRR 500 incorporates similar concepts to NIST and ISO 27001, such as risk management, access controls, and incident response, but is specific to New York-regulated financial institutions. Organizations often align their compliance programs to address overlaps and maintain consistency across multiple frameworks.
SmartSuite enables organizations to manage NY DFS 23 NYCRR 500 compliance by centralizing risk registers, mapping and tracking controls, collecting and attaching evidence to compliance tasks, and automating remediation workflows. Its audit readiness templates and configurable dashboards help monitor compliance posture, streamline reporting, and facilitate regulatory examinations.
Manage controls, risks, evidence, and audits in one platform designed for modern governance, risk, and compliance.