The Central Bank of Cyprus and the Financial and Capital Market Commission of the Republic of Latvia (“FCMC”) singed on 16 April 2003, a “Memorandum of Understanding” on mutual co-operation and exchange of information in the fields of supervision and regulation of credit institutions and international collective investment schemes. The FCMC is the competent authority for the regulation and supervision of Latvia’s broad financial system, including the banking sector and the capital market. The Central Bank of Cyprus, in addition to being the country’s monetary authority, is also the banking supervisory/ regulatory authority as well as the licensing and regulatory authority for International Collective Investment Schemes their Managers and their Trustees under the International Collective Investment Schemes Law of 1999.
The “Memorandum of Understanding” has been signed on behalf of the Central Bank of Cyprus by its Governor Mr Christodoulos Christodoulou and on behalf of the Financial and Capital Market Commission of the Republic of Latvia by its Chairman Mr Uldis Cerps.
The “Memorandum of Understanding” establishes a general framework of mutual co-operation and exchange of information between the two authorities with a view of facilitating the performance of their cross-border regulatory functions and responsibilities and enhancing the supervision and regulation of banking institutions and international collective investment schemes, in accordance with their respective laws and regulations.
The Central Bank of Cyprus pursues an active policy of signing “Memoranda of Understanding” for co-operation and exchange of information, in the fields of its competence, with respective overseas authorities.
In the field of banking supervision “Memoranda of Understanding” have been signed with the Central Banks of countries whose banks already have or may have, in the immediate future, a presence in Cyprus. “Memoranda of Understanding” in this field 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 Yugoslavia and the National Bank of Romania. Moreover, negotiations are currently being carried out with another eight overseas banking supervisory authorities for the signing of similar documents.
In the field of regulating the provision of international financial services, “Memoranda of Understanding” have been signed with the Czech Securities Commission, the Federal Commission for the Securities Market of Russia and the Lithuanian Securities Commission.