The Central Bank of Egypt (CBE) announced on Thursday it has inked a MoU with the Central Bank of the UAE (CBUAE) that aims to enhance joint supervisory cooperation.

The MoU comprises the 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, according to the CBE.

According to the MoU, the two central banks 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 two sides also agreed on consulting each other before granting permission for local banks in each country to establish a branch outside the mother country, as well as informing each other with any critical updates on the regulations and laws concerning banking system operations in each country.

Moreover, they are expected to collaborate in efforts to fight money laundering and terrorism financing.

The MoU stipulates the confidentiality of the exchanged requests and information between the two banks in this respect.

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.

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

“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.