Central Bank Of Cyprus Signs MoU with Austrian Financial Regulator

by Lrys Charalambous, Tax-News.com, Cyprus

20 August 2007

The Austrian Financial Market Authority and the Central Bank of Cyprus, expressing their mutual interest and willingness to establish and promote bilateral ties in the domain of supervision of credit institutions, recently signed a Memorandum of Understanding.

The Austrian Financial Market Authority, as the integrated supervisory Authority for the Austrian financial markets, is the competent Authority for the licensing and supervision of credit institutions operating in Austria. The Central Bank of Cyprus, in addition to being the country’s monetary authority, is also Cyprus’s licensing and banking supervisory authority.

The Memorandum of Understanding was signed on behalf of the Central Bank of Cyprus by its Governor, Athanasios Orphanides, and on behalf of the Austrian Financial Market Authority by Kurt Pribil, Executive Director.

The Memorandum of Understanding defines a general framework of mutual cooperation and exchange of information between the two supervisory Authorities, with a view to facilitating the consolidated supervision of cross-border establishments, and ensuring the safe functioning of credit institutions in their respective countries, in accordance with their national laws and regulations. Currently, one Austrian bank operates in Cyprus in the form of a subsidiary.

The Central Bank of Cyprus pursues an active policy of signing Memoranda of Understanding for cooperation and exchange of information with competent overseas Authorities.

In the field of banking supervision, the Central Bank of Cyprus has signed Memoranda of Understanding with the central banks of countries whose banks already have or may have in the near future, a physical presence in Cyprus. Memoranda of Understanding have already been signed with the Central Bank of the Russian Federation, the Bulgarian National Bank, the National Bank of Ukraine, the National Bank of the Republic of Belarus, the National Bank of Serbia, the National Bank of Romania, the Financial and Capital Market Commission of the Republic of Latvia, the National Bank of Slovakia, the Bank of Tanzania, the Central Bank of Jordan, the Bank of Greece, the Banque du Liban, the Central Bank of Armenia, De Nederlandsche Bank N.V. and the Jersey Financial Services Commission. Moreover, negotiations are currently being undertaken with another eight overseas banking supervisory Authorities for the signing of similar documents.

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