MMoU gains 100th signatory 24 January 2014Indonesia Reporter: Daniel Jackson
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The Indonesian Financial Services Authority is the 100th signatory to the International Organization of Securities Commissions’s multilateral memorandum of understanding on cooperation and exchange of information.
The MMoU is the instrument used by IOSCO to combat cross-border financial services misconduct.
Securities regulators use the MMoU to share essential investigative material, such as beneficial ownership information, and securities and derivatives transaction records, including bank and brokerage records.
The MMoU sets out specific requirements for the exchange of information, ensuring that no domestic banking secrecy, blocking law or regulation prevents the provision of enforcement information among securities regulators.
There are 125 eligible IOSCO members, and the 100th signing marks a watershed for the association. Established in 2002, the MMoU is the cornerstone of IOSCO’s efforts to eradicate potential safe havens for wrongdoers.
As long as jurisdictions remain outside of the international enforcement regime of the MMoU, they create gaps in IOSCO’s global enforcement network.
Greg Medcraft, chair of the IOSCO board, said: “The MMoU is the foundation on which IOSCO's proud record of regulatory cooperation is based. It is a vital instrument supporting our global objectives of confident and informed investors, fair, efficient and transparent markets and reducing systemic risk. The fact we now have 100 signatories is, therefore, a significant milestone for IOSCO. I particularly welcome recent signatories from the Asia-Pacific region—Indonesia and Bangladesh.”
The chairman of Indonesia Financial Services Authority, Muliaman Hadad, said: “IFSA viewed this moment as a milestone in Indonesia FSA’s commitment to mutual assistance and the exchange of information for the purpose of enforcing compliance with the laws and regulations of the relevant jurisdictions, emphasizing the role of securities regulators to assist each other.”
IOSCO has taken significant steps to encourage its members to introduce the measures needed to become a signatory to the MMoU.
The growing number of signatories in recent years has contributed to a sharp increase in cross-border cooperation among IOSCO members, enabling regulators to investigate a growing number of inside traders, fraudsters and other offenders.
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