ASSAL’s Multilateral Memorandum of Understanding on Cooperation and Information Exchange (MMoU)

The MMoU establishes an international benchmark for cross-border cooperation. This document was developed in 2011 for insurance industry supervisors who are members of ASSAL.

What is it?

The Multilateral Memorandum of Understanding on Cooperation and Exchange of Information of the Association of Insurance Supervisors of Latin America (ASSAL MMoU) constitutes a formal framework for cooperation and exchange of information among ASSAL’s signatory members on insurance company supervisory issues in matters that transcend their own borders.

All applicants to the ASSAL MMoU are subject to the rigorous procedure of evaluation of their professional secrecy and confidentiality regimes. As such, MMoU signatories no longer need to independently verify whether each counterparty has adequate provisions and procedures in place to protect the confidentiality of information, thus removing barriers to effective information sharing between supervisors.

When was it established?

The ASSAL MMoU was implemented in September 2011, with the objective of promoting close cooperation and information exchange among insurance supervisors, due to the growing integration of financial markets and the increase in the number of internationally active insurance companies.

Likewise, the new version of ASSAL’s MMoU, revised as of March 2019, became effective in May 2021. This version, among other changes, includes a fast track validation for those applicants to the ASSAL MMoU who are already subscribers to the IAIS MMoU. In addition, the procedure in case of legal succession and transfer of membership is expressly established.

Who has signed?

 Lista de signatarios del MMoU de ASSAL, octubre 2022

What activities fall within the scope of the MMoU?

ASSAL’s MMoU covers all aspects related to the supervision of insurance companies, such as:

  • Granting of licenses or authorizations to operate.
  • Suitability requirements.
  • Ongoing supervision, including audit issues.
  • Reorganization, liquidation and bankruptcy proceedings.
  • Criminal and administrative proceedings; and/or
  • Administration of funds intended to guarantee the payment of insolvencies (“guarantee funds”).

In addition, this MMoU applies to the supervision of other regulated entities, such as insurance intermediaries, and to supervisory issues related to anti-money laundering and combating the financing of terrorism (AML/CFT) regulations, provided that the requested authority and the requesting authority have such legal responsibility.

How to apply?

ASSAL member supervisory authorities interested in subscribing to the MMoU must complete the application form and send all the information indicated therein to the ASSAL Secretariat.

For further information on the application process and requirements, please contact the ASSAL Secretariat at [email protected].

Formulario aplicación – MMoU ASSAL.doc

MMOU ASSAL – Final_Octubre 2022.pdf