UAE, Egypt central banks to ramp up banking supervision

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Egypt’s central bank in Cairo. The MoU also stipulates the confidentiality of requests and information exchanged between both parties. Image Credit: Bloomberg

Dubai: The Central banks of the UAE of the UAE and Egypt plan to strengthen supervisory cooperation through a nee MoU. It outlines the mechanisms of information exchange to facilitate their supervisory and financial stability mandates.

The MoU establishes cooperation mechanisms on licensing, ownership structure of licensed financial institutions (LFIs), authorisation of acquisitions, information exchange and the necessary approvals for licensing requests. The two central banks will inform each other of any significant changes in the regulatory requirements of their jurisdictions.

They also agreed to cooperate in executing their mandates to prevent money laundering and the financing of terrorism by LFIs under their supervision. The MoU also stipulates the confidentiality of requests and information exchanged between both parties.

Khaled Mohamed Balama, Governor of the Central Bank of the UAE, said: “This agreement comes in the right time, given the deepening ties between our financial systems and our economies.”