The Dubai Financial Services Authority (“DFSA”) has entered into a Memorandum of Understanding (“MoU”) with Bank Negara Malaysia (BNM), the country’s central bank, to cooperate in the authorisation and supervision of banks and insurers operating in both markets.
The MoU was signed by the Chief Executive of the DFSA, Bryan Stirewalt, and the Deputy Governor of Bank Negara, Jessica Chew Cheng Lian. The official signing took place on the sidelines of the 2018 International Conference of Banking Supervisors, an event hosted in Abu Dhabi by the Central Bank of the UAE, and in which both Stirewalt and Chew participated.
Stirewalt said: “The DFSA and Bank Negara Malaysia have long enjoyed a strong and close relationship, particularly in the area of Islamic Finance. In recognition of Malaysia’s and Dubai’s commitment and prominence in this field, the DFSA previously entered into an MoU with Bank Negara in March 2007, with the object of further developing the international Islamic Finance markets.”
Stirewalt added: “The signing of the MoU with Bank Negara Malaysia underscores our shared commitment to maintaining the highest standards of supervision and the joint promotion of a stable financial services sector in our respective jurisdictions. The MoU also builds upon our strategic goal of ensuring continued international engagement and strengthening our regulatory ties.”
The MoU anticipates the presence of Malaysian institutions, including those offering Islamic Finance, in the Dubai International Financial Centre (“DIFC”), and formalises arrangements for regulatory cooperation and establishes a framework for exchange of information and regular dialogue between both regulators.