The Central Bank of the UAE (CBUAE) and Bank Indonesia (the Central Bank of the Republic of Indonesia) have reportedly entered a Memorandum of Understanding (MoU) in order to expand mutual co-operation.
The bilateral MoU will be including three key areas, focusing on digital innovation in payments and financial services in order to support more efficient and secure funds transfers, cross-border transaction systems (such as retail payments); and appropriate frameworks for anti-money laundering (AML) and combatting serious issues like terrorism financing.
The MoU is primarily focused on improving bilateral cooperation in the areas of payment systems and digital financial innovation, including traditional and Islamic finance that’s based on trust, mutual understanding and the reciprocity principle. It supports joint projects to explore various cross-border payment platforms and promotes the development of new Fintech services and structures in both nations.
H.E. Khaled Mohamed Balama, Governor of the CBUAE and Perry Warjiyo, Governor of Bank Indonesia have reportedly signed the MoU, the exchange of which took place in the presence of His Highness Shaikh Mohammed bin Rashid Al Maktoum, VP and Prime Minister of the UAE and Ruler of Dubai, and Joko Widodo, President of the Republic of Indonesia.
The CBUAE and Bank Indonesia have also agreed to exchange pertinent information and views on issues of concern or common interest, as per the MoU, based on relevant laws and regulations in each country and other considerations that could be relevant to the parties.
Perry Warjiyo, Governor of Bank Indonesia, noted that the MoU will enhance Bank Indonesia’s cooperation with relevant stakeholders in important areas.
The MoU also indicates Bank Indonesia’s ongoing support for government efforts as a member of the Financial Action Task Force on Money Laundering (FATF) and Bank Indonesia’s commitment to address issues involving money laundering and terrorism financing, while also following the FATF suggestions and applicable guidelines.
H.E. Khaled Mohamed Balama, Governor the CBUAE, stated:
“The signing of this MoU with our esteemed central bank counterparts in Indonesia reflects the CBUAE’s strategy of developing the most efficient payment systems, and working with partners to enforce global regulations to enhance confidence in the UAE financial market. It also demonstrates the clear objective of bringing together like minds to find new financial solutions and to strengthen the joint efforts against illicit financial activity.”