martin p redrado : protecting financial systems from abuse - experiences in implementing anti - money laundering and terrorist financing standards : the case of argentina presentation by mr martin p redrado, governor of the central bank of argentina, to the imf / world bank annual meeting, washington dc, 23 september 2005. * * * we live at a time in history, which faces us against new challenges on a daily basis. against these challenges there can only be collective responses, which are essential for our growth and security. the international agenda has yet important problems to be addressed : inequalities, injustices the persistence of violence, the lack of understanding among cultures, the need for sustainable economic growth and human development. none of our nations has the means to respond to them by itself. consequently, cooperation, full disclosure and joint efforts will be our strength. the list also includes, as a growing concern, fighting new crimes, such as money laundering and terrorist financing. crimes that have direct consequences on security. the response must meet the requirements of our times : the union of the international community, the respect for the rule of law and the assertion of collective responsibility. global crimes require global solutions. in particular, internationalization requires concerted efforts among countries because, as we all know, players located in various parts of the world are involved in organizing and materializing these crimes, with effects that have an influence in all regions. consequently, we need a shared vision. in the face of threats that ignore national borders, effective solutions will come only after a collective effort takes place. the demand for respect, justice and security is not only a political imperative but also a condition for peace. thus, working for the efficient prevention and punishment of money laundering and terrorist financing constitutes a top priority on our country ’ s agenda at the national, regional and international levels. the central bank of argentina has put forward a robust policy with the goal of both providing a regulatory framework for the financial system and enhancing supervision to enforce a new set of rules according to international standards. additionally, we have been collaborating with other government authorities in the policy process aimed at updating current anti - money laundering national legislation. to prove our commitment to work jointly with the international community, we also have brought forward this issue within the center for latin american monetary studies ( cemla ) a hemisphere agency we are chairing until may 2007 – and we are in active cooperation with the work done in the americas by the organization of american states ( oas )

work that is still to be done. the degree of compliance with the international requirements in terms of money laundering and terrorist financing in latin america varies depending on the type of crime. concerning money laundering, eight out of the nine countries that are part of gafisud have legislation to criminalize it. just ecuador remains and is working on a legislative project to fulfill the international standards. different is the situation on terrorist financing, where only three countries – brazil, peru and uruguay – have enabled related legislation. our nine countries are also working together to deepening the investigation process on money laundering and terrorist financing, through the approval – at the regional level – of the guidelines on special investigative techniques and the guide of contacts and procedure for international cooperation on money laundering. despite this progress, countries from the region still confront some of the following challenges : insufficient coordination among national agencies ; underdeveloped tools for financial institutions to identify specific risks – including politically exposed persons and correspondent banking - ; lack of adequate training at many levels – particularly, in terms of trained judicial officials - ; difficulties in designing and implementing balanced regulations for remittance service providers and non - profit organizations and low supervisory capacity and limited resources – financial, human and technological. nevertheless, latin american countries are working together in order to improve our capacities and be up to the global challenges. commitment is shown with concrete facts, as every important thing in life. it is shown by delivering professionally on the field every single day. and we are delivering, from our workplaces, with conviction and promptness.