There is an overall consensus that digitalisation can potentially boost firms’ productivity through several channels. First, technical progress in the production of digital products leads to new, better and cheaper products generating productivity gains in the sectors producing these products. Second, other sectors may benefit from cheaper inputs encouraging a higher use of those inputs as investment goods, resulting in productivity gains for the firms in these sectors. Third, digital technologies enhance product and process innovations leading to new production and organisational processes, new business models and new or superior products. Finally, information and communication technologies (ICT) are seen as reducing the cost of sharing and acquiring knowledge, potentially increasing the diffusion of innovation and new knowledge. However, digitalisation may also entail some challenges. First, while some argue that digitalisation leads to more intense competition, others fear increasing market concentration in some sectors on the back of digitalisation2. Second, some studies find evidence that ICT and automation are related to labour market polarisation3, where mid-skilled jobs either lose value or disappear, while there is an increase in demand for high-skilled job-profiles linked to digital technologies. This can lead to more income inequality or at least to big transition  1  Goldfard, Avi and Catherine Tucker (2019). “Digital Economics”, Journal of Economic Literature, vol 57(1), pages 3-43 OECD (2018): “Maintaining competitive conditions in the era of digitalisation”. OECD report to G-20 Finance Ministers and Central Bank Governors. 3 Michaels, G., Natraj, A. and Van Reenen, J. (2014): “Has ICT Polarized Skill Demand?

Mr Chairman, it is clear from the definition that money laundering is a tool that is used by people involved in illegal activities, such as drug trafficking, organised crime, tax-evading, political bribery and th above all, corruption. In addition, the events of September 11 have added another dimension to the problem of money laundering and brought to light the synonymity between money laundering and terrorism. What then are the stages in money laundering? Though the money laundering process seems so complicated, it usually follows a traceable pattern and three distinct stages can be identified. These are: •  Placement Stage. This it involves the disposal of cash proceeds of the illegal activity. It is at this stage that the proceeds are introduced into the financial system in a manner that avoids detection by the banks and the authorities. At this stage criminals use techniques like depositing large amounts of money in several smaller batches so as to avoid suspicion and detection. BIS Review 6/2003  1  •  Layering Stage. This is when the true character of the cash proceeds of the illegal activities is hidden through a series of transactions in order to erase the audit trail. This is done by transferring this money to off-shore banking centres with strict secrecy laws, or to bearer bonds, and/or shell holding companies and accounts held in the name of nominees. •  The last stage is the Integration Stage where the successfully laundered money is integrated into the financial system.