If we do so, perhaps others too, could replicate some of those efforts which  BIS Review 133/2008  1  have been proved to be successful. Hence, there is an urgent need for us to create the awareness. We also have to enact the necessary laws. Sri Lanka has already passed the necessary laws for this purpose: so have many other countries. That is very important. Because, without the legal framework and the legal backing, our efforts will not succeed. Then, we have to build our own capacities. We have to have people who are trained and competent to deal with these challenges. Because, unless you have the competence, and the ability to recognize certain disguised transactions, the ability to see through the clever facades, and the ability to anticipate the next move of the terror financiers or money launderers, we would not be able to progress. Therefore, we have to diligently follow rules and detection principles. That is why this kind of conference is very important. My dear friends, we have to realize that money launderers and terrorist financiers are also smart. Your Lordship, they may also be having conferences of this nature, in their own way, to see how best they can be a step ahead of all of us, to ensure that they will be able to perform their own dastardly deeds more successfully. They will take advantage of calamities. On many occasions we have seen how that has worked. Earthquakes, droughts, civil strife, tsunamis, etc.
The UK labour market is flexible and here too there are early signs that the degree of mismatch may be easing a little. But in some cases that may take time and it may take extra costs. As is often the case, therefore, the behaviour of labour costs will for me be important in judging the appropriate stance for monetary policy. This won’t be straightforward. Unfortunately, there’s still a great deal of noise in the earnings data – base effects, shifts in furlough and in the composition of employment are all still distorting official estimates of wage growth – but they are nonetheless a key area of focus. Let me now go through these two broad areas in more detail – first traded goods and then the domestic labour market – before wrapping up with some implications for what matters for policy. The strength of global goods price inflation: shifts in demand and constraints on supply The upside surprises in inflation, here and in other countries, have been concentrated in prices of physical goods. Chart 6 plots the two series in the UK. For the first time in quite a while, goods price inflation is  Put another way, mismatch in the labour market tends to raise the rate of unemployment consistent with stable wage growth – the so-called “NAIRU”. 4  6  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  6  higher than that in services. This has happened before – briefly in 2008, 2011 and again in 2017.