DFSA and India's IFSCA to widen scope of cross-border financial supervision

The Dubai Financial Services Authority (DFSA) signed a preliminary agreement with India's International Financial Services Centre Authority (IFSCA) to exchange information and enhance cross-border financial supervision.

The pact, the DFSA’s 110th, was signed by Fadel Al Ali, chairman of the DFSA and Injeti Srinivas, chairman of IFSCA, the Dubai regulator said in a statement on Tuesday.

The agreement sets a framework for mutual assistance and exchange of information between the two regulators for supervision, enforcement and oversight on companies with footprints in both jurisdictions.

It will also support communications between the entities on financial crime such as money laundering, terrorism financing and proliferation financing or targeted financial sanctions.

The two authorities said they will work closely to foster the development of the financial sector by sharing best practices, latest developments in business structures and information on technology and innovations in the market.

“Innovation and technology are rapidly changing the face of the global financial ecosystem,” Mr Al Ali said, adding that co-operation between the two regulators will further boost the development of “our respective economies”.

The deal between the IFSCA and DFSA is of “immense significance” considering the strong and rapidly growing economic ties between the two counties, Mr Srinivas said.

It provides a “strong foundation for strengthening our bilateral co-operation and we look forward to working closely with our counterparts in DFSA for the development and regulation of financial markets in both the jurisdictions”, he added.

In April, the DFSA and the Bank of Italy signed a preliminary agreement to co-operate on financial supervision.

The DFSA, which regulates the emirate’s financial hub Dubai International Financial Centre, frequently updates its rules and regulations to align them with international standards. In October, the authority unveiled framework to regulate investment tokens in the DIFC.

In November, the regulator issued guidelines for listing special purpose acquisition companies that are designed to mitigate some of the risks associated with investment vehicles known as Spacs.