In such instances, we need to have a close co-operation between the FIUs in order to ensure that we are able to be ahead of those with criminal intent. Further, I was particularly impressed that all of you are hoping to have an action plan to be implemented thereafter. 2  BIS Review 133/2008  My dear friends, it goes without saying that we need to come out strongly in our efforts to deal with all these matters. We have seen world economic frameworks being threatened, and being under tremendous pressure during the past one month or so. We have seen unprecedented chaos and turbulence. Nevertheless, we have been able to come through because of the diligent work that we have done. In our own country, there were times when we were encouraged to deregulate, deregulate and deregulate. Fortunately, we did not deregulate as much as we were advised to, by certain quarters. Because of that, we had a few fences around our economy; and those fences today are the important buffers that are protecting us when the unparallel financial tsunami is hitting the entire world. When you have fences, it is difficult for outsiders to come in. At the same time, however, when an external disaster strikes, the fences come in handy, because the fences protect you. So, in a way, we have been protected by some of the safeguards that we had installed in our systems. Even when we opened out our economy, we were careful, and we opened out slowly.
can be useful breeding grounds for this kind of illegal financing efforts. These terror financiers make use of unsuspecting bankers as their partners. Although sometimes, certain bankers can be knowingly involved, on many occasions, they may even be unknowingly involved. Sometimes these money launderers and terrorists use informal systems. They by-pass the formal systems and have other parallel systems. I am sure that, in your deliberations you would be discussing these matters and considering as to how these can be addressed. If there is a parallel system, which is operating side by side with the formal system, they can make use of such systems to do what they want. They also disguise transactions. Certain transactions which are actually for laundering money or which are financing terrorism would not be obvious, as they may be cleverly concealed. The transactions will be packaged in such a way that unless you have a vigilant or trained eye, you would not be able to spot it. Very often, the illegal financiers will also pretend to be very respectable people in society, and indeed, may even be considered so by the world at large. They may come in the guise of social workers, philanthropists, community workers, aid workers, NGOs, etc. Therefore, we have to be alert. We have to be a few steps ahead. We have to have bankers, media, regulators, prosecutors and a judiciary who will keep abreast of the methods and the ruses that could be adopted by these unscrupulous people. We must also have regular updates.