The Dubai Financial Services Authority (DFSA) recently entered into a Memorandum of Understanding (MoU) with the Central Bank of Cyprus.

The MoU was signed on behalf of the DFSA by Chief Executive, Mr Paul Koster, having been signed earlier in Nicosia by the Governor of the Central Bank of Cyprus, Dr Athanasios Orphanides.

Mr Paul M Koster, Chief Executive of the DFSA said, “The Central Bank is the independent supervisor of banks in Cyprus which was integrated into the Eurosystem in January 2008. The DFSA already values its formal working relationship with Cyprus’s markets’ regulator, the Securities and Exchange Commission, having signed an MoU in May 2008. This signing indicates a growing interest on the part of European institutions in doing business in the Dubai International Financial Centre.”

This initiative also extends the DFSA’s collegiate links with the supervisors of financial institutions in Cyprus and reflects each Authority’s commitment to co-operation in relation to prudential oversight and inspections. It adopts the model for information sharing developed by the Basel Committee on Banking Supervision and follows similar arrangements the DFSA has with other significant banking supervisors in the UK, US, Germany, France, India, Singapore and China.

Recent financial turmoil has reinforced the importance of effective dialogue and collaboration between banking supervisors. We must find better ways to work together to resolve current problems and prevent their repetition. Agreements of this kind should help that process, Mr Koster added.”