reflect the 2003 revision to the fatf standards, and the additional emphasis on combating the financing of terrorism, our focus is now very much on implementation. we believe that we have achieved a fair measure of compliance already, be it in terms of levels of reporting of suspicious transactions by banks, and in our successful conviction of persons for money laundering offences. however, we would be the first to recognise that there is always more to do here. in particular, with relatively low levels of domestically generated criminal proceeds, the greatest risk of money laundering and terrorist financing comes from questionable proceeds that transit bahrain and the region. being an international financial centre, of course, the potential for proceeds to transit through our financial system is increased. this poses particular challenges to our supervisors and law enforcement agencies. it means that we are more likely to be used by criminals in the layering stage of money laundering rather than in other stages of the process. to combat this effectively, we need to develop our training and tools to detect suspicious transactions, not only where the underlying offence occurred locally, but also where the offence may have occurred in another jurisdiction, quite possibly a distant part of the world. this requires a sophisticated approach to transaction monitoring by institutions, and to investigations by law enforcement agencies. it potentially requires the analysis of complex financial trails which cross many international borders ; close cooperation with overseas authorities ; and resource intensive efforts to link the proceeds to a geographically remote underlying predicate offence. this is the principal challenge that we now face, and that we are determined to meet as we continue to work on fighting financial crime. events such as these, where we can benefit from the experiences and expertise of other jurisdictions, can make a valuable contribution in this regard. on that note, let me finish by thanking you, once again, for your much appreciated participation ; and to wish you all a productive two days.

jerome h powell : welcoming remarks – " conversation with the chairman : a teacher town hall meeting " welcoming remarks by mr jerome h powell, chairman of the board of governors of the federal reserve system, at conversation with the chairman : a teacher town hall meeting, washington dc, 6 february 2019. * * * thank you to all the educators who are here with us in washington or are joining us online. i look forward to responding to your questions. but first, i have a few thoughts about the vital work you do as economics educators and its connection to what the federal reserve is trying to accomplish. i promise to be brief, because it is a school night. i am here today, and the fed has organized this event, because of the importance of economics education. some of your students may go on to become professional economists, but all of them, i hope, will apply the valuable lessons and the skills they have gained from economics in other careers and in others aspects of their lives. studying economics can benefit students in multiple ways. the lessons of economics are valuable in a wide variety of vocations. moreover, the knowledge gained will empower students as consumers, managers of their own finances, and as informed citizens. economics has been consistently useful to me over my career in law, finance, and government service. it is, of course, central to my current role as a monetary policymaker and financial regulator. in government, economic analysis is one of the principal tools we use in making policy decisions. among other things, economics is an essential facet of the science of public policy. what policies actually work? which ones sound good but don ’ t work, or are actually counterproductive? economics gives us the tools to answer those questions and help us make the best the decisions on behalf of the public. of course, economics is not only the basis for judgments and decisions made by the fed and other government agencies. it also underpins the countless decisions by consumers, businesses, and investors that drive economic activity. the concepts you teach and apply in the classroom guide those decisions and even help explain human behavior outside of the workings of the economy. for example, to continue to grow and succeed, any business owner should understand the differences between fixed cost, variable cost, average cost, and marginal cost. businesses and investors need to understand present or discounted value, but so should any parent or grandparent starting a college fund. economics teaches us about the power of incentives, which are central to thinking