DIFC Governor highlights strength of DIFC's regulatory environmentPress Release 18 Feb 2007 04:05 pm
- Stresses vision of HH Sheikh Mohammed to ensure good governance and the rule of law
- Highlights crucial role played by DFSA in regulating regional financial centre
- Praises DFSA’s recent injunction against operator of fraudulent Internet investment scheme
A strong, independent regulator operating at the level of international best practices is key to the success of the Dubai International Financial Centre (DIFC), His Excellency Dr. Omar Bin Sulaiman, Governor of the DIFC, said today.
Citing the recent injunction obtained by the Dubai Financial Services Authority (DFSA) against the operator of a fraudulent Internet investment scheme, Bin Sulaiman said:
“Recently, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, spoke eloquently of the importance of such a proactive and efficient regulatory mechanism. In his ‘Dubai Strategic Plan,’ Sheikh Mohammed spoke of the emirate’s economic competitive advantage and bright outlook for continued growth. In that context, he highlighted the importance of good governance, transparency, accountability and the rule of law. The recent actions taken by the DFSA demonstrate a commitment to realising that vision. I applaud the DFSA for taking such rapid and effective action.”
The DIFC Governor continued: “The DFSA is to be commended for successfully obtaining this injunction. The DFSA acted rapidly upon complaints to ensure the closure of the company . This move reinforces the message that our regulatory framework is strong and matches the best in the world. I would like to thank the DFSA for its role in ensuring the very highest regulatory standards, and also thank the local authorities for their role in this process. The DFSA continues to set new benchmarks in the region in terms of financial regulation.”
Following the DFSA investigation, the Malaysian Securities Commission in Kuala Lumpur made three arrests and froze USD$350,000 in assets after finding a secondary account linked to the fraudsters. Two of the suspects were later released, while one person is currently being questioned by Malaysian authorities. These actions were taken by the Malaysian authorities to assist the ongoing DFSA investigation
In the past two years, the DFSA has shut down two rogue companies, including one operating out of Japan, in cooperation with the law enforcement authorities of the UAE and other international security agencies.
The DFSA is an Associate Member of the International Organisation of Securities Commissions (IOSCO), the world’s leading body of Securities Regulators. In 2006 the DFSA became a signatory to a multilateral MoU with IOSCO. This initiative, covering consultation and cooperation and the exchange of information, began in response to increasing international activity in the securities and derivatives markets, and the corresponding need for mutual cooperation among securities regulators to ensure compliance with, and enforcement of, their laws and regulations. As a signatory, the DFSA joined existing signatories representing the world's major capital markets, including the United Kingdom, France, Germany, the United States, Hong Kong, and Singapore.
The DFSA has signed Memoranda of Understanding or Protocols (MoUs) with some of the world’s leading financial services and markets regulators, including the Financial Services Authority of the United Kingdom, BaFin in Germany and CFTC in Washington. These MoUs set out a framework for cooperation and information sharing between the regulators. They recognise that each regulator places reliance on the quality of regulatory standards administered by the others.