The Central Bank of the UAE (CBUAE) has signed a Memorandum of Understanding (MoU) with the Central Bank of Egypt (CBE) to enhance supervisory cooperation.
The MoU establishes the cooperation mechanisms on licensing, the ownership structure of licensed financial institutions (LFIs), authorization of acquisitions, examinations of LFIs, information exchange, and the necessary approvals for licensing requests.
According to the statement, the MoU outlines information transfer mechanisms to smooth the performance of their supervisory and financial stability mandates.
The CBUAE and the CBE have also committed to work together to carry out their mandates of preventing money laundering and terrorist financing by LFIs under their supervision. The MoU also ensures the confidentiality of requests and information shared between the two parties.
HE Khaled Mohamed Balama, Governor of the Central Bank of the UAE said, “The signing of the MoU with the Central Bank of Egypt will allow us to comply with best international practices in supervising cross-border banking operations. This agreement comes in the right time, given the deepening ties between our financial systems and our economies.”
“Egypt is keen to strengthen the bonds of collaboration with Arab nations, in a manner that reflects on the welfares of its people and achieves the goals of mutual economic development. The memorandum signed with the Central Bank of the United Arab Emirates will accomplish the coveted cooperation between the two central banks and strengthen the robust relationship between the two countries.”
Recently, CBUAE has issued a new outsourcing regulation and associated standards for banks operating in the UAE, as part of a continual endeavor to develop robust regulatory frameworks that appropriately manage and secure the Emirate’s banking sector.