With the recent signing of a Memorandum of Understanding with Canada, the Cayman Islands Monetary Authority (CIMA) continues its efforts in cross border cooperation networks.

This recent MOU adds to a long list of agreements including Brazil, US, Island of Man, Jamaica, Panama, Barbados the Bahamas, Belize, British Virgin Islands and the Turks and Caicos Islands and the Netherlands Antilles.

CIMA General Counsel, Langston Sibblies, explained that the MOU with the Office of the Superintendent of Financial Institutions Canada was an important one because it regulates and supervises all insurance, trust and loan companies, cooperative credit associations and fraternal benefit societies in Canada and has exclusive jurisdiction over all banks operating in the country.

"The MOU will allow us to develop cooperative relationships in a structured and clear way and will further enhance supervision of Canadian entities operating here, particularly in the banking sector," said Mr Sibblies.

According to Mr Sibblies the MOU establishes a protocol for the sharing of information and protection of information shared, cooperation regarding on-site inspections carried out by one regulator on supervised financial institutions in the other jurisdiction, and ongoing coordination.

It facilitates the agencies' performance of their respective duties and promotes the safe and sound functioning of the financial institutions they supervise.

The agreement also facilitates close cooperation regarding suspected financial crime activities in supervised institutions.

OSFI's Regulatory Liaison, Charles Johnston, noted the OSFI was pleased to have signed this MOU with the Monetary Authority.

"We expect it will result in further cooperation between us in future," said Mr Johnston.

As with other MOUs established with overseas regulators, this is subject to the domestic laws of both jurisdictions stated Mr Sibblies.

"One area of concern for OSFI in negotiating the MOU was the preservation of confidentiality of information that would be provided under the agreement and the assurance that information received would be used for lawful supervisory purposes.

On examination of our respective legislation we were both satisfied that our laws governing information exchange and deterring financial crime are equivalent. This facilitated the establishment of the MOU," said Mr Sibblies.

The Monetary Authority Managing Director, Cindy Scotland, added this latest agreement underscored the importance on international cooperation for international financial centres.

"The MOU with OSFI again demonstrates our commitment to assist overseas regulators in a manner consistent with Cayman's laws as we pursue our mission of creating a competitive and internationally recognised financial services industry," said Ms Scotland.

shurna@caymannetnews.com