【WikiEXPO Global Expert Interviews】 Cleopatra Kitti: A Foresight on Cross-Border Regulation

Cleopatra Kitti：INSEAD Certified Independent Director/ Board Member leadership in Global Affairs, Governance, Business Sustainability/Advisor to corporations, governments and international organisations (EMEA, US, UK).

On the occasion of WikiEXPO Cyprus, we are honored to speak with you about the evolving landscape of financial compliance and the role of platforms like WikiFX in strengthening transparency in the global forex industry.

I.Background and Role

Q1. What were the defining moments in your career that led you to pursue a career in corporate governance, social impact, and geopolitics?

My executive career in the global advisory business for over 30 years across regions has given me precious insights into cross border business, regional regulatory convergences and divergences; I have worked for governments and corporations, gaining an understanding of the drivers of decision making for political and business leadership. Whether shareholder returns or citizen engagement, leaders have to deliver value within certain socio-economic, market and policy dynamics. The convergence of these defines the secret sauce of sound judgement in governance.

As an INSEAD Certified Independent Director, my commitment to good governance in the boardroom is driven by my experience in global affairs, in sustainable business metrics and geo-economic drivers. In the boardroom it is important to find other idirectors who share ethics, values and commitment to independent thinking in pursuit of value creation.

Q2. Could you share some of your experiences as a member of the Board of a regulated financial entity? What are the key responsibilities and challenges of serving on the Nominations and Internal Governance Committee?

As Chair of Nominations and Internal Governance Committee of a regulated financial entity, there are clear regulatory expectations to meet in order to oversee the process of nominating and appointing Fit and Proper board members. Ethics,knowledge, judgment, time availability, an understanding of the sector, or a skillset that completes board competence, are all key parameters in delivering value to the Nominations Committee.

Internal Governance is defined by the oversight on the financial institutions functioning to best practice standards within the legal and regulatory frameworks. I was fortunate to be supported by a very diligent and professional internal governance team at the institution I was serving for 7 years who efficiently curated the work of the Committee.

As board member of a subsidiary of a Eurozone regional bank; as well as for boards of a listed and of a privately owned business, it is important to understand shareholder dynamics and goals, commit time to understand the business fundamentals of the sector and of the business itself, the alignment of regulatory cultures between the jurisdictions the organisation has fiduciary responsibility to, whilst delivering independent thinking for the success and sustainability of the organisation. There are specific board expectations for distinct models of business ownership, and there is one constant benchmark for the board: set the risk appetite and create sustainable value.

II. Cross-border Regulation and Policy Coordination

Q3. What role do you believe Cyprus plays in the forex and financial regulatory landscape? What unique challenges or advantages does it present compared to other countries?

Cyprus was one of the first EU jurisdictions to regulate and oversee licenses with regulatory clarity for the sector within European regulatory frameworks.

To retain regulatory clarity, the regulator and the licensed entities must collaborate effectively, in order to respond to the ever evolving regulatory, technological and global geoeconomic landscape. There is always a balance to strike between mitigating risk and capturing opportunity. Technological and socio-economic change are challenges for the regulator and the industry.

Q4. A core challenge in the foreign exchange market is cross border regulatory disparity. Which areas in the Mediterranean and EU regions do you think require the most coordination?

The Mediterranean region is the least integrated region in the world. We are 500 million people producing 10% of global GDP and only ¼ of our trade is intra regional. It spans the countries of southern Europe – from Spain to Cyprus, the Balkan rim touching the Med; Turkey, the Levant region from Lebanon, Syria and Israel;, and North Africa – from Egypt to Morocco. The regulatory landscape is not homogenous. The EU Mediterranean complies with EU rules; Israel is more aligned to the US; the rest of the region are distinct regulatory regimes. An investor or a business must study carefully the jurisdictions it wants to invest in or license in, and understand where there are convergences in regulatory models and where there are divergences; understand well the socio-economic and political drivers on the regulatory framework. The region is as large as the EUs internal market and it would be important to capture its dynamic in competitive and evolving trade environment.

Q5. And what observations or suggestions have you drawn from your work at the International Crisis Group?

I have been involved with the Crisis Group a global NGO working to prevent conflict and promote peace - since 2005, as a supporter of their analytical work in conflict zones around the world. As volunteer on the frontline with Crisis Groups field work and analyst teams, I came to understand first hand, the root causes of conflict, mediation dynamics and possibilities for peace making. The learnings have helped me appreciate the risk drivers for business, and socio-economic framing for capital investment and policy making. My intent is to deliver value creating, independent, authentic good judgement as board member and as strategic advisor to international corporations and governments.

III. Risk Management & Investor Protection

Q6. With your extensive experience in risk governance, how do you view initiatives like WikiFXs global compliance database and its warnings for investors against unlicensed brokers? How important are such transparency tools in strengthening investor protection?

All tools that enhance transparency and strengthen investor protection are extremely important. The critical success factors are appllicability, data, collaborative frameworks with the regulatory authorities and financial literacy for all relevant target groups - risk and opportunity must be clearly understood.

It would also be useful to capture and benchmark trends in financial markets in order to design effective policies and tools that safeguard transparency, literacy and protection for the regulator, the consumer and for the sector.

Q7. From your perspective, how can the forex and finance industry leverage platforms and expos like WikiEXPO to set higher compliance standards and enhance investor education?

WikiEXPO should invest in building networks for business, regulatory and market leaders; continue to bring stakeholders together to exchange of views, ideas, tools, technologies, socio-economic drivers that may define changes ahead. It may want to take extra steps in capturing key trends, risks and opportunities, in such a way that becomes an essential interlocutor to all key stakeholders in meeting their best potential.

About WikiEXPO Global Expert Interview

As the organizer of WikiEXPO, WikiGlobal is committed to fostering international dialogue and cooperation through offline exhibitions. By engaging with global experts on financial regulation, technology, and governance, WikiGlobal aims to enhance the integration of fintech and regtech, improve regulatory efficiency and accuracy, and promote industry self-discipline. Through these efforts, we encourage financial institutions to adopt best practices, build a more transparent and resilient ecosystem, and ultimately create a safer trading environment for investors worldwide.