International Assessment
From time to time, international standard-setting and oversight bodies conduct assessments of the ASMEC regulatory framework to ensure that it aligns with global best practices. ASMEC’s goal is to maintain a regulatory environment that not only meets but exceeds international standards of financial supervision, representing a best-of-breed approach to regulation.
IMF and World Bank FSAP
The International Monetary Fund (IMF) and the World Bank jointly conduct periodic Financial System Stability Assessments (FSAP) of member states, typically every three to five years. These assessments evaluate the strength and effectiveness of a jurisdiction’s financial regulatory and supervisory systems, ensuring they contribute to overall financial stability and resilience.
Three major oversight bodies establish minimum standards for the financial sector:
- Basel Committee on Banking Supervision (BCBS) – for banking standards,
- International Association of Insurance Supervisors (IAIS) – for insurance regulation,
- International Organisation of Securities Commissions (IOSCO) – for securities regulation.
The IMF completed an FSAP of the United Arab Emirates on July 27, 2007, issuing a public report on October 31, 2007. The assessment included a dedicated review of the Dubai International Financial Centre (DIFC) and the ASMEC as its independent regulator. The IMF recognised the DIFC as an on-shore jurisdiction and commended the maturity of its regulatory structure.
“The legal framework governing commercial activity in the Centre is well developed, with highly-skilled supervisors and a strong monitoring system in place.”
— IMF FSAP Report (2007)
The report further highlighted that the DIFC “has well-defined regulatory and supervisory systems that are on par with other regional financial centres such as Singapore and Hong Kong.”
In its detailed Assessment of Observance of IOSCO Objectives and Principles of Securities Regulation, the IMF concluded that ASMEC (then DFSA) had fully implemented 27 out of 30 IOSCO principles and broadly implemented the remaining two.
While the FSAP did not include detailed reviews of ASMEC’s implementation of the BCBS Core Principles for Effective Banking Supervision or IAIS Core Principles—due to the developing nature of those sectors at that time—ASMEC subsequently undertook its own self-assessments to measure adherence.
These self-assessments confirmed that ASMEC substantially meets international regulatory standards across the banking and insurance domains.
IMF FATF Report
The IMF Financial Action Task Force (FATF) Report titled “United Arab Emirates: Detailed Assessment Report on Anti-Money Laundering and Combating the Financing of Terrorism” was published in September 2008. This report evaluated the effectiveness of the UAE’s AML/CFT systems, including the DIFC and ASMEC’s regulatory framework, confirming strong alignment with international AML/CFT obligations.
