Emma RadmoreFCA has published a Memorandum of Understanding (MoU) between the Bank of Greece (BoG) and the BoE and FCA which aims to formalise supervisory cooperation and information sharing arrangements in the wake of Brexit.
Under the MoU, each authority is to confidentially share and provide information upon request as far as is appropriate and possible. This may include situations such as serious financial difficulties, violations of law, money laundering or terrorist financing links, and any other relevant financial crime. The authorities also agree their intention to cooperate in risk assessments which would be shared in relation to any joint work or cross-border entities. The MoU also states that each authority will advise each other on any regulatory or supervisory systems and of any major change to their domestic rules and regulations.
The MoU will not hinder enforcement actions, as the authorities should cooperate in situations even where they have a regulatory interest. It also specifies how data will be protected: the respective authorities are bound by the applicable legal framework for data protection, and information shared will not include customer account information unless there is a particular justification (for example, in relation to AML).
The MoU states that cooperation between BoG and the BoE and FCA is essential for the ‘integrity, stability and efficiency’ of their financial systems. However, it represents a statement of intent rather than a legally binding agreement.