http://www.complinet.com/ Compliance Complete Middle East RSS feed en THOMSON REUTERS GRC en THOMSON REUTERS GRC http://www.complinet.com/global/news/news/article.html?ref=152193 The Dubai Financial Services Authority (DFSA) has announced that its chief executive, Paul Koster, will step down in September 2012. In an official statement, the DFSA said that its board of directors had begun a nomination process to identify a new chief executive. "The board are confident of finding a worthy successor to Paul Koster to take over the important work which he, and his team, have been doing; to strive to maintain the high international standards of the DFSA as an independent regulatory body and to contribute to the success of the Dubai International Financial Centre (DIFC) as a whole," the regulator said. Thu, 09 Feb 2012 10:00:11 GMT http://www.complinet.com/global/news/news/article.html?ref=152193 2012-02-09T10:00:11Z http://www.complinet.com/global/news/news/article.html?ref=152169 (Reuters) - The U.S. Treasury Department on Wednesday enlisted five EU nations to help crack down on offshore tax evasion by Americans and ease the burdens the effort has imposed on many banks and financial institutions. After complaints from the global financial industry about costs and legal issues, Treasury announced a new multilateral approach to implementing the Foreign Account Tax Compliance Act, or FATCA. Enacted by the U.S. Congress in 2010, FATCA is intended to help the U.S. Internal Revenue Service gather information about Americans' accounts with more than $50,000 in assets in foreign banks and other institutions. Scheduled to take effect in 2013, the new law as drafted calls for banks and financial institutions worldwide to gather the information and directly disclose it to the United States' Internal Revenue Service (IRS) tax collection agency. Under Treasury's proposed new government-to-government framework for implementing FATCA, the governments of France, Thu, 09 Feb 2012 07:55:00 GMT http://www.complinet.com/global/news/news/article.html?ref=152169 2012-02-09T07:55:00Z http://www.complinet.com/global/news/news/article.html?ref=152178 Feb 8 (Reuters) - The U.S. Treasury Department on 
Wednesday eased the burdens imposed on many banks and other 
financial institutions by a crackdown on Americans' offshore tax 
dodging, and enlisted five European governments to play a key 
role in the global effort. At issue is the Foreign Account Tax Compliance Act, or 
FATCA, a controversial set of measures enacted by Congress in 
2010 that has drawn sharp criticism from the financial industry 
worldwide about costs and legal issues. FATCA is expected to take effect in 2013 but Treasury 
announced some delays in implementing some key details. FATCA  
covers accounts in foreign banks and other institutions held by 
U.S. clients with more than $50,000 in assets. The new proposed regulations from Treasury call for France, 
Germany, Italy, Spain and the United Kingdom to be part of "a 
government-to-government framework for implementing FATCA." These five Thu, 09 Feb 2012 00:00:02 GMT http://www.complinet.com/global/news/news/article.html?ref=152178 2012-02-09T00:00:02Z http://www.complinet.com/global/news/news/article.html?ref=152165 BEIRUT | Wed Feb 8, 2012 9:07am EST (Reuters) - Lebanese banks which worked for years to build up business in neighboring Syria have been quietly implementing U.S. and European Union sanctions against Damascus to avoid jeopardizing their international operations, bankers and economists say. This is despite close financial ties between the two countries, cemented by the opening of seven Lebanese banking affiliates in Syria after President Bashar al-Assad began liberalizing the economy when he came to power 12 years ago. Lebanese bankers insist they are not legally bound to implement the Western sanctions, which ban business dealings with dozens of Syrian officials and companies in response to Assad's crackdown on pro-democracy protests. Lebanon has opposed an Arab League plan to slap sanctions on Damascus. In practice, however, international pressure has been so heavy that Lebanese banks have not been able to ignore it. They risk damaging their ties with Western banks if they continue Wed, 08 Feb 2012 10:06:03 GMT http://www.complinet.com/global/news/news/article.html?ref=152165 2012-02-08T10:06:03Z http://www.complinet.com/global/news/news/article.html?ref=152150 BEIJING | Tue Feb 7, 2012 8:01am EST (Reuters) - Trade between Asia and Iran is likely to slow as new U.S. sanctions make payments more difficult, traders said Tuesday, although the more determined can still find a route through Middle Eastern intermediaries. Sunday, U.S. President Barack Obama authorized new measures which extend sanctions to all Iranian financial institutions and require financial institutions doing business in the United States to block and freeze transactions having a suspected link to Iran. Previous sanctions had only required American banks to reject those transactions. Asian importers of Iranian crude, fuel oil and iron ore will find the sanctions complicate payment, which already often goes through intermediaries in the Middle East. Iran will be forced to rely more on settlement in illiquid currencies, which raises its cost of trade and adds to pressure on its currency. "Iranian cargoes I can get, that's not a problem. But how to pay is a problem," Wed, 08 Feb 2012 10:00:49 GMT http://www.complinet.com/global/news/news/article.html?ref=152150 2012-02-08T10:00:49Z http://www.complinet.com/global/news/news/article.html?ref=152148 The Saudi Arabian Monetary Agency (SAMA) and the Capital Market Authority (CMA) have agreed to strengthen inter-agency coordination aimed at improving the oversight of entities under their joint jurisdictions. An official statement from SAMA said that the agreement covered regulation and supervision of corporate governance, accounting standards, risk management, securities issuing and settlement, mergers and acquisitions, ownership limits, and the exchange of information. According to the statement, the agreement stipulated that SAMA and the CMA would coordinate before issuing or updating regulations and guidance material of common interest. "They shall coordinate with respect to any steps that should be taken to ensure the stability of the financial sector in the Kingdom," it added. Additionally, SAMA and the CMA will coordinate the regulation of corporate governance and accounting standards for listed companies in the banking and insurance sectors, as well as firms in other industries Wed, 08 Feb 2012 10:00:16 GMT http://www.complinet.com/global/news/news/article.html?ref=152148 2012-02-08T10:00:16Z http://www.complinet.com/global/news/news/article.html?ref=152170 LONDON, Feb 8 (Reuters) - The European Union's top markets regulator signalled on Wednesday that credit ratings from the United States were close to satisfying EU rules, without which banks would face the cost and upheaval of finding alternatives. The European Securities and Markets Authority (ESMA) must decide by April 30 if the rules for compiling ratings in the United States are as strict as those in the 27-nation bloc. If not, banks will have to obtain alternative ratings, a costly and time-consuming process. "We fully understand how important it is that we get to a solution here," ESMA Chairman Steven Maijoor told a conference organised by the Association for Financial Markets in Europe, a banking lobby. "We know the U.S. is very far ahead, and very far with getting close to the European requirements in this area," Maijoor said. ESMA has to reassure itself that the U.S. system for regulating credit rating agencies is "broadly similar" and that U.S. supervisors will Wed, 08 Feb 2012 08:12:50 GMT http://www.complinet.com/global/news/news/article.html?ref=152170 2012-02-08T08:12:50Z http://www.complinet.com/global/news/news/article.html?ref=152154 WASHINGTON (Reuters) - Foreign and U.S. banks plan to warn lawmakers on Wednesday that broad application of U.S. swaps rules could undermine U.S. competitiveness abroad, increase the cost of hedging and even provoke brinkmanship among international regulators. The 2010 Dodd-Frank law, which aims to curb excessive risk-taking on Wall Street, gives the Commodity Futures Trading Commission new oversight powers for the opaque $700 trillion derivatives market. That includes broad authority to regulate any swaps activities overseas so long as it has a "direct and significant" impact on U.S. commerce. The CFTC has been mostly silent on the reach of its new swaps rules. But concern over swaps jurisdiction gained momentum last April when banking regulators proposed a rule on margin and capital for uncleared swaps that appeared to impose tough Dodd-Frank rules on U.S. bank branches in other countries, while exempting their foreign competitors. Such a framework Wed, 08 Feb 2012 07:45:00 GMT http://www.complinet.com/global/news/news/article.html?ref=152154 2012-02-08T07:45:00Z http://www.complinet.com/global/news/news/article.html?ref=152124 (Reuters) - The underperforming global economy should not be allowed to delay financial system reforms, according to a senior official at the Financial Stability Board (FSB), a global watchdog set up by the Group of 20 nations. The official also said that the FSB would propose new rules on so-called "shadow banking" by year-end. Bank of Canada Senior Deputy Governor Tiff Macklem, who chairs a key FSB committee , pushed back against bankers who argue now is not the time to impose tougher new capital standards on lenders due to the recession in Europe and a weak U.S. economy. "The current challenges are not an excuse for delay. Quite the opposite," Macklem said in a speech in Toronto. "In a risky world, the need to make the financial system safer and restore confidence is vital. If there is a reproach to be made, it is that progress has not been faster," he said. The roll-out of the new capital rules for banks around the world, known as Basel III, is the "biggest Wed, 08 Feb 2012 00:08:56 GMT http://www.complinet.com/global/news/news/article.html?ref=152124 2012-02-08T00:08:56Z http://www.complinet.com/global/news/news/article.html?ref=152132 Trade between Asia and Iran is likely to slow as new U.S. sanctions make payments more difficult, traders said on Tuesday, although the more determined can still find a route through Middle Eastern intermediaries. On Sunday, U.S. President Barack Obama authorized new measures which extend sanctions to all Iranian financial institutions and require financial institutions doing business in the United States to block and freeze transactions having a suspected link to Iran. Previous sanctions had only required American banks to reject those transactions. Asian importers of Iranian crude, fuel oil and iron ore will find the sanctions complicate payment, which already often goes through intermediaries in the Middle East. Iran will be forced to rely more on settlement in illiquid currencies, which raises its cost of trade and adds to pressure on its currency. "Iranian cargoes I can get, that's not a problem. But how to pay is a problem," said an iron ore trader in New Delhi. Some Tue, 07 Feb 2012 14:59:38 GMT http://www.complinet.com/global/news/news/article.html?ref=152132 2012-02-07T14:59:38Z http://www.complinet.com/global/news/news/article.html?ref=152098 BRUSSELS, Feb 7 (Reuters) - European Union member states are working on a new round of sanctions against Syria, which they hope to conclude by Feb. 27, EU diplomats said on Tuesday. The sanctions would include a freeze on the Syrian central bank's assets as well as on most transactions with it, they said. The sanctions would also ban the import and export of phosphates, diamonds, gold and other precious metals. "A new round of financial sanctions is on the table," one diplomat said, adding that they had full backing from France and Germany. "The sanctions would include freezing assets of the Syrian central bank and banning any transaction with it which is not deemed legitimate... Sanctions would also foresee a ban on imports and exports of phosphates, gold, precious metals and diamonds." EU member states are also considering a ban on commercial flights to and from Syria, but agreement on this is less likely, the diplomats said. "A realistic objective would be to Tue, 07 Feb 2012 10:00:14 GMT http://www.complinet.com/global/news/news/article.html?ref=152098 2012-02-07T10:00:14Z http://www.complinet.com/global/news/news/article.html?ref=152066 From Monday April 2, banks and building societies, insurers, and large investment firms will deal with separate prudential and conduct supervisors, although both supervisory teams will still be located at the Financial Services Authority (FSA). The large group of firms not destined to be 'dual regulated' in the new 'twin peaks' structure will be supervised by conduct teams only, and will continue to be solely supervised by the Financial Conduct Authority (FCA) when the FCA and Prudential Regulation Authority (PRA) are established with the launch of true twin-peaks regulation in the next 12 to 18 months. Speaking yesterday at a breakfast briefing hosted by the British Bankers Association (BBA), the FSA's chief executive, Hector Sants, said that the intention was to make the internal restructuring as close as possible to the coming statutory twin peaks. But the FSA must still by law operate within the current legal framework, which is not yet governed by the future Financial Services Act, Tue, 07 Feb 2012 06:59:24 GMT http://www.complinet.com/global/news/news/article.html?ref=152066 2012-02-07T06:59:24Z http://www.complinet.com/global/news/news/article.html?ref=152069 MILAN/LONDON, Feb 6 (Reuters) - Most plans put forward by European banks to improve the industry's resilience are in line with what was asked of them, their regulator said on Monday, as some banks made last-ditch efforts to meet the demand to lift capital. Italy's Banco Popolare unveiled a plan to raise hundreds of millions of euros by buying back hybrid bonds, as one of 31 banks told to fill a 115 billion euro hole in their balance sheets by the end of June. Intesa Sanpaolo also said it will boost capital by buying back debt, even though it has not been ordered to do so. The aim is to ensure the industry is strong enough to withstand an economic slowdown and the euro zone's sovereign debt crisis. The European Banking Authority (EBA) meets on Wednesday and Thursday to assess each bank's plan, and will reject any that are unrealistic. "The overwhelming majority of measures outlined in the plans appear to be, in aggregate, in line with the spirit and the letter of the Mon, 06 Feb 2012 08:27:31 GMT http://www.complinet.com/global/news/news/article.html?ref=152069 2012-02-06T08:27:31Z http://www.complinet.com/global/news/news/article.html?ref=152031 Feb 5 (Reuters) - The United States is coming to be seen as a global threat, acting unilaterally with aggressive new market rules that critics say will hurt U.S. firms, foreign banks, and international markets in one swoop. The new buzzword in the financial world is "extraterritoriality", or ET. The idea that a government can exercise its authority beyond its borders. The fear is that after the 2007-2009 financial crisis that roiled global markets, some countries will engage in an arms race of tough financial reforms in order to be seen as the safest capital markets, and will haphazardly foist their own rules on other nations. Despite its talk of a global level playing field, the United States is being portrayed as a rogue country, with its unmatched Volcker rule to curtail banks' risky trades and its accelerated timetable to put in place new derivatives reforms. The backlash has gained force in recent weeks. International finance ministers are taking up their Mon, 06 Feb 2012 06:03:52 GMT http://www.complinet.com/global/news/news/article.html?ref=152031 2012-02-06T06:03:52Z http://www.complinet.com/global/news/news/article.html?ref=152002 The European Commission's publication of which countries are to be equivalent under Solvency II is more interesting for its omissions than its inclusions, according to PwC. The major jurisdictions, included in a letter from Jonathan Faull, of the European Commission, to Gabriel Bernadino, chairman of the European Insurance and Occupational Pensions Authority (EIOPA), come as no surprise, but the omission of Canada, a significant insurance jurisdiction, hits European insurance groups with Canadian subsidiaries. The omission of the U.S. has adverse implications for capital requirements to cover the groups' U.S. subsidiaries. Paul Clarke, global Solvency II leader at PwC, said: "European groups with Canadian subsidiaries know now that they will not be equivalent and should plan on this basis. For those interested in the U.S. debate, there is no early answer and so contingency plans are advisable." He noted that the remoteness of U.S. equivalence, brought into sharp relief by the letter, Mon, 06 Feb 2012 06:01:59 GMT http://www.complinet.com/global/news/news/article.html?ref=152002 2012-02-06T06:01:59Z http://www.complinet.com/global/news/news/article.html?ref=152005 DUBAI | Thu Feb 2, 2012 12:34pm EST The central banks of UAE and Qatar have told lenders to stop financing trade with Iran, bankers said on Thursday, cutting another source of credit for a country struggling under Western economic sanctions imposed over its nuclear programme. The Gulf has a long history of trade with Iran, especially in Dubai where there is a large Iranian trading community, and Gulf banks had been expected to fill a funding gap for the import of grains left by European lenders banned from financing trade by EU sanctions. "Banks in Dubai were asked by the UAE central bank to stop issuing letters of credit to finance trade with Iran. Before the sanctions, the central bank regularly checked on trading with Iran and wanted to know of all dealings between the two countries," said a Dubai-based banker active in trade financing. "Banks can't do this anymore." About 8,000 Iranian traders are registered in Dubai, and re-export trade between Iran and the UAE totalled Sat, 04 Feb 2012 15:45:10 GMT http://www.complinet.com/global/news/news/article.html?ref=152005 2012-02-04T15:45:10Z http://www.complinet.com/global/news/news/article.html?ref=151973 WASHINGTON, (Reuters) - Banking transactions with Iran and financing for its oil shipments could come under tougher scrutiny after a bipartisan sanctions bill easily passed a key U.S. Senate Committee on Thursday. The Senate Banking Committee passed a bill that lawmakers hope will further eat into revenues they say Tehran is using to develop nuclear weapons. Iran denies seeking nuclear arms. The impact of new sanctions will depend on how aggressively the administration chooses to implement them. President Barack Obama on Dec. 31 signed sanctions aimed at Iran's central bank, and his administration is grappling with how quickly to put them into action. The White House said on Thursday that enforcement of the sanctions should not harm U.S. allies or oil markets. The new Senate package seeks to target foreign banks that handle transactions for Iran's national oil and tanker companies, and for the first time, extends the reach of Iran-related sanctions Fri, 03 Feb 2012 07:35:35 GMT http://www.complinet.com/global/news/news/article.html?ref=151973 2012-02-03T07:35:35Z http://www.complinet.com/global/news/news/article.html?ref=151942 The Central Bank of the United Arab Emirates (CBUAE) recently hosted the inaugural meeting of the Financial Stability Board (FSB)'s Regional Consultative Group for the Middle East and North Africa (MENA) region. In a statement, the FSB said that regulatory reform discussions centred on the Basel III capital and liquidity standards, as well as the United Arab Emirates' perspective on the supervision of globally systemically important financial institutions (G-SIFIs). The FSB said that members had focused on the effect of the sovereign debt crisis, the links between sovereign debt and financial sector balance sheets, uncertainty in bank funding and the development of domestic capital markets. The MENA consultative group is co-chaired by the governors of the Saudi Arabian Monetary Agency (SAMA) and the Central Bank of Kuwait (CBK). The group's current membership includes financial authorities from Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Thu, 02 Feb 2012 10:02:50 GMT http://www.complinet.com/global/news/news/article.html?ref=151942 2012-02-02T10:02:50Z http://www.complinet.com/global/news/news/article.html?ref=151945 The Qatar Financial Centre Regulatory Authority (QFCRA) has issued a Guide to Corporate Governance (PDF), which elaborates on the main governance requirements contained in various QFC rules and regulations. In an official statement, the QFCRA said that the Guide also reflected global standards set out by the Basel Committee on Banking Supervision (BCBS), the International Organisation of Securities Commissions (IOSCO) and the International Association of Insurance Supervisors (IAIS). The regulator said: "The guide will assist QFC firms in benchmarking their corporate governance practices against best practice standards and identify areas of potential improvement." Michael Ryan, acting chief executive of the QFCRA, emphasised that the guide was one of several initiatives being pursued by the QFCRA to strengthen governance and transparency among QFC firms. "These initiatives are critical to promoting sound business practices and to ensuring that the interests of shareholders, clients, Thu, 02 Feb 2012 10:02:18 GMT http://www.complinet.com/global/news/news/article.html?ref=151945 2012-02-02T10:02:18Z http://www.complinet.com/global/news/news/article.html?ref=151940 The Emirates Securities and Commodities Authority (ESCA) has signed memoranda of understanding with Belgium's Financial Services and Markets Authority (FSMA) and Luxembourg's Commission de Surveillance du Secteur Financier (CSSF). The agreements established legal and technical frameworks to boost supervisory information-sharing between ESCA and its two European counterparts, covering securities companies, futures contracts, options and dual listing of public joint stock companies. In a public statement, Abdullah Al-Turifi, ESCA's chief executive, said that the mutual cooperation arrangements would ultimately result in the joint listing of securities on the respective countries' markets. The statement added that the agreements would also promote technical assistance and training to boost the competence of licensed market participants. Al-Turifi emphasised the need for mutual technical support which would target investment management, listing procedures, futures regulation and the Thu, 02 Feb 2012 10:01:56 GMT http://www.complinet.com/global/news/news/article.html?ref=151940 2012-02-02T10:01:56Z http://www.complinet.com/global/news/news/article.html?ref=151947 Feb 2 (Reuters) - The central banks of China and Qatar agreed to strengthen cooperation in areas such as developing their financial markets, a statement said on Thursday, the latest in a series of agreements that the People's Bank of China has sealed globally in the last several months. Qatar's Prime Minister Sheikh Hamad bin Jassim al-Thani and Chinese Premier Wen Jiabao attended the signing of the memorandum of understanding on Jan. 18 in Doha, Qatar's central bank said on its website (www.qcb.gov.qa). The memorandum boosts cooperation in information exchange as well as the stability and the development of financial market systems, and will spur the development of payments systems, the statement said without elaborating. Central bank officials were not available to comment. The agreement was signed when Wen toured the Gulf Arab region last month, including Qatar, the world's top liquefied natural gas exporter, Saudi Arabia, the biggest oil exporter, Saudi Arabia, and the United Thu, 02 Feb 2012 10:01:26 GMT http://www.complinet.com/global/news/news/article.html?ref=151947 2012-02-02T10:01:26Z http://www.complinet.com/global/news/news/article.html?ref=151948 The United Arab Emirates Central Bank has issued a circular calling on banks in the country to take necessary measures against internet hacking. The circular called on banks to fully cooperate with the UAE Security Department to secure their networks on the Internet and to prevent hacking attacks by third parties, reported Al Khaleej newspaper. According to the report, the technical experts in the UAE Central Bank earlier foiled attempt to hack and sabotage the bank site on the Internet. Meanwhile confidential sources confirmed that hackers from Israel were responsible for such attacks. Bob Thompson the Director of Information Technology at the Central Bank said the hackers attacked the network of the bank by flooding false information which would lead to the collapse of the information system of the bank and lead to chaos. On the other hand, banking experts said they were fully cooperating with the Central Bank, and praised such quick actions aimed at maintaining the security Thu, 02 Feb 2012 10:00:55 GMT http://www.complinet.com/global/news/news/article.html?ref=151948 2012-02-02T10:00:55Z http://www.complinet.com/global/news/news/article.html?ref=151892 Nearly two-fifths of respondents to a new survey said they expect their organization to face incidents of bribery or corruption in the Middle East over the next year. The responses, which come from a Middle East Report released Monday for PricewaterhouseCooper’s Global Economic Crime Survey, are starkly higher than those across the world, where less than one-fourth of respondents said they expect to face incidents of bribery or corruption in the next 12 months. Moreover, bribery and corruption was present in 43% of incidents of economic crime in the Middle East, the survey found, almost double the global rate of 24%. And more Middle East respondents expect to face incidents of accounting fraud and money laundering than the global average. Of the nearly 3,900 responses to the global survey, 126 came from a series of interviews with C-suite executives, senior vice presidents and heads of departments in the Middle East representing organizations from Bahrain, Egypt, Iraq, Jordan, Wed, 01 Feb 2012 10:00:05 GMT http://www.complinet.com/global/news/news/article.html?ref=151892 2012-02-01T10:00:05Z http://www.complinet.com/global/news/news/article.html?ref=151831 WASHINGTON - Lawmakers on the U.S. Senate Banking Committee plan to vote on a new round of sanctions targeting Iran's energy sector, aimed at choking off funds they suspect Tehran uses to develop nuclear weapons. Among its measures, the draft bill would require companies traded on U.S. stock exchanges to disclose any activity in Iran to the Securities and Exchange Commission, which could prompt further sanctions. The committee released details of its 61-page bipartisan bill late on Monday and lawmakers will consider the measures and vote on them at a hearing on Thursday. "Iran's continuing defiance of its international legal obligations and refusal to come clean on its nuclear program underscore the need to further isolate Iran and its leaders," said Tim Johnson, the Democratic chairman of the committee. The package comes on the heels of tough new embargoes by European nations and new banking sanctions that President Barack Obama's administration is beginning Tue, 31 Jan 2012 07:45:00 GMT http://www.complinet.com/global/news/news/article.html?ref=151831 2012-01-31T07:45:00Z http://www.complinet.com/global/news/news/article.html?ref=151782 The Dubai Financial Services Authority (DFSA) has signed a statement of protocol with the Public Company Accounting Oversight Board (PCAOB), the American agency responsible for federal oversight of the audits of public companies. In an official statement, Paul Koster, chief executive of the DFSA, said that the ability of audit regulators to cooperate and share information was critical to the protection of investors and the public interest, especially in the current climate. The statement added that eight U.S. regulated firms were operating in the Dubai International Financial Centre (DIFC) and that the PCAOB was already conducting audits jointly with the DFSA. According to the DFSA, the statement of protocol would facilitate a greater level of information-sharing. Koster noted stressed that as fellow members of the International Federation of Independent Audit Regulators, the DFSA and the PCAOB were committed to developing and implementing international standards, such as supporting Mon, 30 Jan 2012 10:00:36 GMT http://www.complinet.com/global/news/news/article.html?ref=151782 2012-01-30T10:00:36Z