Singapore and Hong Kong Special Administrative Region regulators are strengthening cooperation to supervise banks in the two key financial hubs.

An agreement facilitates the exchange of information and mutual assistance for supervisory purposes, according to a joint statement by the Hong Kong Monetary Authority and Monetary Authority of Singapore on Wednesday.

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“Hong Kong and Singapore are the two leading international financial centers in the region,” Eddie Yue Wai-man, HKMA’s chief executive, said in the statement, adding the pact reinforces the close ties. Chia Der Jiun, MAS’ managing director, said this paves the way for deeper collaboration.

Authorities in the two hubs have grappled in recent years to deal with scams as well as money laundering, with Singapore hit by its biggest laundering case two years ago. This pact boosts the surveillance of cross-border operations of banks under the purview of both regulators, according to the statement.