The Memorandum of Understanding will allow Bank Al-Maghrib to supervise Moroccan banks’ activities overseas.
Rabat – Morocco’s central bank, Bank Al-Maghrib (BAM), has signed a Memorandum of Understanding (MoU) with the Dubai Financial Services Authority (DFSA) to cooperate in the supervision of banks based in Morocco and Dubai.
The two bodies signed the MoU on Wednesday, March 13, in Rabat.
The agreement highlights Bank Al-Maghrib’s commitment to developing the highest governance standards in Moroccan banks and supervising their activities overseas, including within international financial hubs such as Dubai, said BAM in a statement.
The MoU will cover, in particular, the efficiency of regulatory tools for banks having mutual interests in Morocco and Dubai. The agreement would help bolster investors’ confidence and promote bilateral financial services.
Under the MoU, Bank Al-Maghrib and the DFSA will share all information regarding authorization applications made by banks established in both jurisdictions.
The exchange will also concern information on the financial strength of credit institutions as well as the points identified in reports and during supervision visits.
Representatives of the two authorities will hold ad-hoc meetings to address supervisory issues relating to cross-border institutions based in both jurisdictions.
BAM and DFSA will also work jointly to identify possible financial offenses related, in particular, to unauthorized banking services, money laundering, and any other breach of regulatory requirements.