Topic BaFin Bilateral and multilateral cooperation
Article from the Annual Report 2016 of the BaFin
BaFin entered into further memoranda of understanding (MoU) in 2016 (see appendix), including for instance an agreement with the Capital Market Authority (CMA) in Lebanon. BaFin also negotiated an MoU with the Securities & Exchange Organisation (SEO) in Iran. Both memoranda govern cooperation between the authorities in issues surrounding securities supervision (see info box "Memoranda of understanding").
Memoranda of understanding
BaFin agrees memoranda of understanding (MoU) with other supervisory authorities. These serve as the formal basis for the signatory authorities to cooperate and exchange information on credit institutions, investment firms and insurers that operate on a cross-border basis. A distinction must be drawn between general abstract MoUs, which are the rule, and institution-specific MoUs. In turn, these can be sector-specific or cross-sectoral.
BaFin has also entered into a memorandum of understanding with the United States Commodity Futures Trading Commission (CFTC) concerning closer cooperation in securities supervision. The two supervisory authorities agreed to exchange information.
In the area of banking supervision, BaFin agreed an MoU with the Banking Agency of the Federation of Bosnia and Herzegovina and the Banking Agency of Republika Srpska. The subject matter of the agreement includes the exchange of information on credit institutions and local supervisory visits.
In the year under review, BaFin also cooperated intensively on a technical level with a large number of countries such as Vietnam – primarily in issues relating to securities supervision – and Ukraine.
BaFin and the Deutsche Bundesbank also continued their technical cooperation with the Bank of Kosovo in 2016; this well-functioning relationship has been in place for years. The two authorities held a joint seminar in Kosovo that addressed cutting-edge, risk-based banking supervision. German development agency Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) also took part in the multi-day event.
In addition, BaFin held specialist seminars in 2016 as a member of the European Supervisory Education Initiative (ESE). These events addressed financial conglomerates and consumer protection.
In the field of multilateral cooperation, BaFin supports the development and implementation of the Enhanced Multilateral Memorandum of Understanding (EMMoU) of the International Organization of Securities Commissions (IOSCO). The expanded text now includes the so-called ACFIT powers: obtaining audit papers, compelling attendance for testimony, advising on freezing assets on behalf of a foreign supervisor, and obtaining and sharing internet service provider and telephone records. The objective is to ensure effective enforcement of securities law, including in light of the ongoing globalisation, growing interconnectedness and technical progress. BaFin will be involved in its implementation, which will start in 2017.
