It will work with a regulator to monitor fintech activities.
The Monetary Authority of Singapore (MAS) and financial centre Abu Dhabi Global Market (ADGM) inked a Memorandum of Understanding (MoU) to strengthen the supervision of cross-border operations of banking institutions.
According to a press release, the agreement will build on the cooperation framework of MAS and the Financial Services Regulatory Authority (FSRA) of ADGM to cover not only banks but also financial markets and fintech-related activities.
Previously in 2015, MAS formed a Financial Technology & Innovation Group (FTIG) to drive its Smart Financial Centre initiatives. FTIG is responsible for formulating regulatory policies and developing strategies to facilitate the use of technology in the financial sector.
The FSRA launched a Regulatory Laboratory (RegLab) in November 2016 for innovator businesses to develop and test their solutions.
The FSRA has recently awarded in-principle approval to one Singapore firm who provides credit services. The FSRA is also in regular communication with various Singapore firms, such as fund managers, who are interested in expanding their operations and establishing funds in Abu Dhabi and the wider region.
Photo by Jannahplace - Own work, CC BY-SA 4.0
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