BoE Court flags cyber risks from Anthropic's Mythos AI
The Bank of England’s governing body has approved a long-term Leeds office lease and highlighted escalating cyber threats driven by advanced AI models capable of uncovering unknown system vulnerabilities.
The Bank of England’s Court of Directors convened on 23 April to address institutional governance and emerging operational threats, prioritizing the evolving cyber landscape and the central bank's ongoing regional expansion.
Central to the security discussion was the impact of emerging technologies. Directors reviewed new AI models, notably Anthropic’s Mythos, which the Bank noted can identify previously unknown system vulnerabilities. The Court warned that constant investment is necessary to maintain current cyber security levels. Members asked to be kept updated on the resource implications of emerging plans to mitigate these specific AI-driven risks.
Governor Andrew Bailey briefed the Court on risks to global financial stability following recent International Monetary Fund and World Bank meetings. Directors emphasized the need to assess long-duration risks, including the second and third-round impacts of economic shocks on the integrity of strategic planning assumptions.
In a move relevant to cross-border market infrastructure, the Court noted a new Category B Memorandum of Understanding with the European Supervisory Authorities. This agreement outlines oversight and cooperation regarding Critical Third Parties, a key regulatory focus for financial stability frameworks.
On the operational front, the Court approved a long-term lease for a permanent office in Leeds as part of a target to base 500 staff in the city. A confirmed pipeline of joiners is expected to lift the current headcount of 280 to approximately 300 by year-end. This geographic expansion runs parallel to a domestic restructuring, as most staff exiting under the Bank’s Mutually Agreed Resignation scheme will leave by the end of May.
Internal governance adjustments included raising the threshold for Court approval on contracts and projects to £20m, though strategic projects below this limit will still require executive discussion. Non-executive directors highlighted the necessity of managing third-party risks, particularly concentration risk.
Finally, the Court approved key personnel changes. Randall Kroszner was re-appointed to the Financial Markets Infrastructure Committee for a second three-year term, while the terms of Martin Pluves and Julia Black were extended. Sir William Blair stepped down as Chair of the Enforcement Decision Making Committee.
