The Central Bank of Saudi Arabia has signed a memorandum of understanding with the Central Bank of the Emirates, in order to set a general framework for cooperation activities in the field of supervision and control of the insurance sector in both countries.
The memorandum of understanding will focus mainly on the joint work between the two banks, regarding the exchange of supervisory and regulatory information related to the insurance sector, including the rules of solvency, how to calculate technical provisions, and the rules of investment policy, as well as procedures related to supervision, follow-up and enforcement of companies operating in the sector. Including cross-border companies, the two parties also agreed to cooperate in the field of training and exchange of supervisory expertise.
The memorandum of understanding will lay the foundations for establishing a framework for cooperation between the two parties; To consolidate the role of supervision over the insurance sector in the UAE and Saudi Arabia, and to enhance cooperation and common interests, as the memorandum came against the background of a government agreement recently concluded between the two brotherly countries, aimed at strengthening cooperation in the field of services and financial markets.
The two banks will also cooperate on the application of international standards in their markets, in particular the International Financial Reporting Standard, in addition to the standards and recommendations issued by the International Association of Insurance Supervisors and the Islamic Financial Services Board. The MoU also provides for the exchange of information related to suspicious activities, fraud in the insurance sector, money laundering and terrorist financing.
The Governor of the Saudi Central Bank confirmed his aspiration to work hand in hand with the Central Bank of the Emirates; To strengthen the integrated economic system between the Kingdom and the UAE in the field of insurance, and to strengthen the economic structure in support of the growth and prosperity of the insurance sector in the two brotherly countries.
For his part, the Governor of the Central Bank of the Emirates stated: We seek to strengthen cooperation and exchange experiences with our counterparts in the Kingdom of Saudi Arabia in the financial fields, including the insurance sector, which would contribute to improving the performance of the supervision system over the financial sector, and increasing the growth of investments and cooperation. trade, and deepening the bonds of economic partnership between the two countries.
The signing ceremony took place in the presence of the Governor of the Saudi Central Bank, Fahd bin Abdullah Al Mubarak, and the Governor of the Central Bank of the Emirates, Khalid bin Muhammad Balama, in Jeddah, on the sidelines of the 46th regular session of the Council of Governors of Arab Central Banks and Monetary Institutions.
