DIFC Unveils Regulatory Code

by Carla Johnson, Investors Offshore.com

03 June 2003

The Dubai International Financial Centre (DIFC) last week published its proposed regulatory framework for industry consultation.

According to reports in the regional media, the framework of the regulatory code is based on the best practice of leading jurisdictions in the Far East, Europe, and North America, and demonstrates a clear intent on the part of the DIFC to work closely with the Central Bank on areas such as anti-money laundering compliance, whilst retaining the freedom to implement additional rules.

Speaking following the unveiling of the planned regulations, Philip Thorpe, chief executive of the DIFC Regulatory Authority, explained that:

'We have...made good use of our freedom to create a single, logical framework - in contrast to older-established jurisdictions, who often have to make (do) and mend within existing frameworks which may gradually become more complex and less relevant.'

He announced on Wednesday that:

'Much work has still to be done before the DIFC can begin to issue its licenses. But enough has been achieved already - with today's proposed Regulatory Law as another milestone - for us to be in no doubt that the DIFC can become a magnet for international capital to finance business and employment not only in Dubai and the UAE but throughout the region.'

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