this area of work so that the work of these organizations can complement each other for the benefit of all countries in the region. i understand that this co - operation already exists and i would like to take this opportunity to encourage its expansion. it is also important to continue having dialogue between the regions ’ private and public sectors as we continue driving this common agenda. this will ensure that both the public sector policy makers and private sector implementers move in tandem. without overemphasising the point, capacity building should be a key pillar of this dialogue. i hope that esaamlg will be able to initiate such dialogue at an appropriate time. those of us in the financial sector stand ready to participate in such an initiative. at this juncture, it would be important to recognise the esaamlg ’ s cooperating nations and organisations for their supportive role in capacity building in the region. i would like in particular to acknowledge governments of the united states and united kingdom, the united nations office on drugs and crime, the world bank and the imf. it is my expectation that they shall remain engaged as esaamlg continues to spearhead the development of an enabling aml / cft legal and regulatory framework in the region. as i wind down my comments, i urge you to take some time to enjoy the beautiful beaches and warm hospitality that mombasa offers. there is indeed a swahili saying that translates as “ getting into mombasa is easy, the hard part is getting out ”. so if you find yourself wanting to extend your stay here, do not be surprised. kenya, of course, offers much more including the acclaimed “ seventh wonder ” of the world, the maasai mara which is currently experiencing the spectacular annual migration of wildebeest from the serengeti in tanzania. as you embark on your meeting over the next few days, i wish you very fruitful deliberations. do enjoy the evening and, indeed, your entire stay in mombasa. it is now my pleasant and honourable duty to declare the 16th esaamlg task force of senior officials officially open.

##amlg, we remain resolutely committed to fighting the double evils of money laundering and financing of terrorism. allow me for the next few minutes to wear my central bankers ’ hat as a regulator of the banking sector. from where i sit, i am acutely aware, that money laundering is a threat to both the integrity and stability of the banking sector and even the forex bureaus themselves. further, with increased globalisation, our banking systems are increasingly under close scrutiny by our international trading partners particularly with regard to anti money laundering legal and regulatory frameworks. ladies and gentlemen : in kenya, as i have alluded, we are in the process of enacting a comprehensive anti money laundering legislation. however, this is not to say that there are no measures in place at the moment to deter money laundering. the central bank, as both regulator and supervisor of banking institutions, has played a key role in ensuring that systems to combat abuse of the banking sector by criminal elements are in place. in 2000, the central bank of kenya issued guidelines to all commercial banks pursuant to the banking act on “ know your customer ” and “ customer due diligence ” procedures. the guidelines vest responsibility on the board of directors and management of banking institutions to : • establish appropriate policies and procedures to ensure the effective prevention, detection and control of possible money laundering activities and terrorism financing. • train staff in the prevention, detection and control of possible money laundering activities and terrorism financing. • ensure adequate identification of customers, their source of funds and the use of the said funds. the guidelines were reissued in 2006 following a review that took into account international developments and experiences of financial institutions in implementing the 2000 guidelines. key changes included : • strengthening of customer due diligence procedures. • providing additional guidance on identification of suspicious transactions by commercial banks. • introduction of guidance on customer due diligence procedures for non face to face transactions that have gained increased prominence with the growth in internet and telephone banking. we know that the rapidly changing technologies and the introduction of new financial products remains a major challenge which requires financial institutions and regulatory bodies to constantly remain vigilant of possible abuse of new products by criminals. the central bank continues to monitor adherence to the existing guidelines through its surveillance mechanisms and adopting them to the changing environment. kenyan banks have faced a number of challenges in implementing these guidelines. i am sure that these are challenges also shared in some of the countries represented here. in particular, some customer due dil