The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding (MoU) with Bank Negara Malaysia (BNM), the country’s Central Bank, committing both parties to the further development of international Islamic Finance markets.
The MoU was signed by the Chief Executive of the DFSA, David Knott, and the Deputy Governor of Bank Negara, Datuk Zamani Abdul Ghani. The signing coincided with a visit to Kuala Lumpur by Mr. Knott and his participation in the Global Islamic Finance Forum.
Mr. Knott said: “The DFSA has today announced two highly significant joint initiatives with Malaysian authorities that will contribute to the future growth of international Islamic Finance markets.
“The first initiative with the Securities Commission, Malaysia has cut regulatory red tape for the distribution of Islamic finds in the Dubai International Financial Centre (DIFC) and Malaysia. This will make it easier for investors to access products from both jurisdictions.
“The second initiative to work constructively with Bank Negara in developing international Islamic finance markets will exploit the experience and skills that both Dubai and Malaysia have established as leaders in their respective regions. The DFSA is confident that these new relationships will enhance the DIFC’s reputation as a centre of excellence for Islamic finance in the Middle East,” added Mr. Knott.
Editor’s notes:
The Dubai Financial Services Authority (DFSA) is an independent, integrated regulatory authority responsible for the regulation of all financial and ancillary services conducted in or from the Dubai International Financial Centre (DIFC), including asset management, banking, securities trading, Islamic finance, re-insurance, and an international financial exchange. The DFSA has been created using principle-based primary legislation modelled closely on that used in London and New York, and the DFSA regulatory regime operates to standards that meet or exceed those applying in the world's major financial centres.
The DFSA is a central component of the DIFC, a new financial centre established to position Dubai as a recognised hub for institutional finance, and the regional gateway for capital and investment to the Middle East.
Mr. David Knott was appointed Chief Executive of the DFSA on June 1, 2005. He is a former Chairman of the Australian Securities and Investment Commission and was Chairman of the Technical Committee of the International Organisation of Securities Commissions (IOSCO).
Bank Negara Malaysia was established on 26 January 1959 as the country’s Central Bank responsible for issuing currency and keeping reserves safeguarding the value of the currency; acting as a banker and financial adviser to the Government; promoting monetary stability and a sound financial structure; and influencing the credit situation to the advantage of the country.
Datuk Zamani Abdul Ghani was appointed the Deputy Governor of BNM on 16 May 2004. Datuk Zamani has served BNM for 36 years in the areas of reserve management, insurance, banking supervision and payment systems and, from April 1994, he was Assistant Governor. Datuk Zamani was also an Executive Director at the International Monetary Fund and Director General of the Labuan Offshore Financial Services Authority.
