thus those economies will likely lack growth momentum for the time being, from a longer - term perspective ; however, growth rates are expected to pick up again. bis central bankers ’ speeches of course, uncertainties remain high regarding the outlook for overseas economies, such as consequences of the government debt problem in the united states, the debt problem and efforts to restore financial soundness in europe, outcomes of structural reforms to address problems such as excess production capacity in the manufacturing sector in china, and efforts to address structural problems in other emerging and commodity - exporting economies, all of which warrant attention. however, even bearing in mind such uncertainties, the baseline scenario is that overseas economies will continue to pick up and japan ’ s exports will accordingly increase moderately. developments in employment and income from the perspective of a sustainable recovery in domestic demand, i would like to talk next about developments in employment and income. as mentioned earlier, japan ’ s economy is expected to recover moderately in a virtuous cycle among production, income, and spending, and will achieve the 2 percent price stability target. to this end, it is critical to have an improvement in income in order to underpin private consumption. looking at current employment and income developments, supply and demand conditions in the labor market continue to recover steadily, albeit moderately, due partly to resilient domestic demand, and the unemployment rate has declined to the level observed prior to the lehman shock, of around 4 percent ( chart 6 ). this improvement in supply and demand conditions in the labor market has started to influence nominal wages. the year - on - year rate of change in nominal wages per regular employee has become slightly positive, partly reflecting growth in summer bonuses for the first time in three years and an increase in overtime pay. in addition, the year - on - year rate of growth in hourly nominal wages per parttime employee has been modestly accelerating ( chart 7 ). going forward, as the improvement in supply and demand conditions in the labor market continues, nominal wages are expected to be put under upward pressure gradually. while scheduled wages per employee have remained negative year - on - year, due partly to an increase in the proportion of part - time workers, if these stable wages start to increase, this will contribute to a sustainable increase in household spending. amid increasing corporate profits, partly due to ongoing initiatives through cooperation among the government, workers, and employers, we anticipate an increase in scheduled wages, including an increase in base wages. developments in business fixed

entities. the fatf considers that if implemented effectively and with respect to applicable human rights provisions by countries and the private sector, targeted financial sanctions are an important means to deprive terrorist and proliferation financiers of their funds, thereby protecting citizens from the threats of crime, terrorism and weapons of mass destruction. in order to be effective, however, these measures also have to be implemented and enforced in practice. 1 / 2 bis central bankers'speeches as an international financial centre, mauritius is committed to protecting its financial services sector from abuse. as a member of the united nations, mauritius has given effect to the sanctions regime under the un security council resolutions as well as the fatf recommendations 6 and 7 though the enactment, in may 2019, of the united nations ( financial prohibitions, arms embargo and travel ban ) sanctions act 2019 – the un sanctions act as it is more commonly referred to. the un sanctions act imposes a number of obligations on financial institutions, namely – prohibition against dealing with funds and other assets ( asset freeze ) of a designated or listed party ; prohibition against making funds and other assets ( and financial services ) available to, or for the benefit of listed parties ; reporting obligations and reporting of suspicious information, amongst others. the un sanctions act further requires financial institutions to implement internal controls and other procedures to enable a financial institution to effectively comply with the un sanctions act. it is therefore imperative for financial institutions to have adequate policies and procedures, systems and controls in place to enable the financial institutions to, amongst others, – identify the existing accounts, transactions, funds or other assets of designated persons and entities ; immediately freeze any identified funds or other assets held or controlled by designated persons and entities and prevent designated persons and entities from conducting transactions with, in or through them. as the central bank of the country and the aml / cft regulator for the banking sector, the bank of mauritius must safeguard not only the financial stability and soundness but also the integrity of the banking sector. non - compliance with the aml / cft obligations, including the targeted financial sanctions, will therefore, be severely dealt with by the bank. on those notes, allow me, ladies and gentlemen, to leave the floor to our panel of distinguished speakers who will guide you on the implementation of these obligations. i thank you for your kind attention and wish you a fruitful workshop. 2 / 2 bis central bankers'speeches