The National Bank of Ukraine and the National Bank of the Republic of Kazakhstan have agreed to cooperate in the area of banking supervision.
The Governor of the National Bank of Ukraine Yakiv Smolii and the Governor of the National Bank of the Republic of Kazakhstan Daniyar Akishev signed a cooperation agreement on 12 October 2018 during the annual International Monetary Fund (IMF) and World Bank (WB) summit that took place in Nusa Dua (Bali, Indonesia).
The agreement mainly aims to enable cooperation and exchange of supervisory information.
In particular, the agreement envisages cooperation regarding supervision over the activities of parent organizations and their cross-border organizations, in compliance with the requirements of the national laws of the countries. The document also provides for information exchange in connection to financial market indicators, changes in supervisory rules and requirements, as well as in connection to licensing and supervision over parent undertakings and their cross-border subsidiaries.
The parties have also agreed to cooperate during inspections.
“Inspections of cross-border institutions that are members of banking groups and bank holding companies will be conducted by the supervisory authorities of the host country, while inspections of their parent undertakings will be conducted by the supervisory authorities of the home country,” the document says.
The agreement also envisages exchange of information that relates to anti-money-laundering and combatting the financing of terrorism. To that end, the supervisory authorities of both countries have agreed to jointly organize events in order to study and analyze identified AML/CFT schemes and suspicious transactions, and will make a concerted effort to counteract such schemes and transactions.
“The cooperation aims at effective performance of their functions and enhancing reliability and stability of the banking systems of their countries,” the agreement says.