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CBE and UAE’s central bank sign MoU to boost joint supervisory cooperation

The agreement includes mechanisms of data and information exchange between the two sides

By: Business Today Egypt

Thu, Jun. 10, 2021

A MoU was recently signed between the Central Bank of Egypt (CBE) and the Central Bank of the UAE (CBUAE) in a move to strengthen joint supervisory cooperation and bilateral relations.

The agreement includes mechanisms of data and information exchange between the two sides for the sake of easing their supervisory duties and facilitating their role in maintaining the financial stability in both countries.

The CBE and CBUAE will cooperate in fields of licenses, the ownership structures of the licensed financial institutions, and acquisition processes licenses, as well as the examination of the licensed financial entities.

The MoU will support the commitment of the two banks to the best international practices in the field of supervising banking operations across borders, said Governor of the Central Bank of the UAE Khaled Mohammed Balama Al-Tameemi.

According to the MoU, the two central banks will consult each other before granting permission for local banks in each country to establish a branch outside the mother country.

This also includes informing each other with any critical updates on the regulations and laws concerning banking system operations in each country, and collaborate in efforts to fight money laundering and terrorism financing.

The CBE’s statement stressed on the MoU’s stipulations on the confidentiality of the exchanged requests and information between the two banks.

The CBE said that Egypt is willing to enhance its partnership with its Arab brothers, through which it can achieve its joint economic development objectives, adding that the signed MoU aims to reinforce the robust ties between Egypt and the UAE.

“This MoU is timely, and it is based on the strong relations between the financial systems and the economies of the two countries,” said Al-Tameemi.