##management of financial institutions. dealing with this falls within the province of supervision, and i will not here go into the question of supervision of the financial markets, except to say that a mechanism for proper coordination between the various supervisory authorities in israel ’ s economy is sorely needed, and it is a pity that it has not yet been activated. the second is artificial restrictions that were imposed by the authorities at some time or other on the mechanism of the market. the removal of such restrictions is essential if financial crises are to be avoided. the major ones are : 1. earmarked bonds the arrangement regarding bonds earmarked for the pension funds provides the clearest example of such restrictions on the market mechanism. this arrangement systematically destroys the market for tradable government bonds, the existence of which is one of the preconditions for a market for private bonds, providing the banking system with a basis for pricing for the system of medium - and long - term deposits and credit. this phenomenon of earmarked bonds will spread even more quickly · if the required tax reform assigning the tax benefits on pension savings mainly to savings for retirement is introduced ; · if the budget constraint on tax relief requires a distinction to be made between savings which entitle the member to a pension and lump sum savings for retirement ; · if the move from unfunded to funded pensions follows the planned path ; · and if a compulsory pension law is passed incorporating the rules which apply currently to the pension funds. the best way out of the earmarked bonds arrangement is similar to the method used in the life insurance field in the transition from guaranteed yield life insurance schemes to profit - sharing schemes. that is : · not to change the rules in the existing new pension funds, but to close them to new members ; · to ensure that pension funds established from now on are based only on the market. if the government can support pension savings and wishes to do so beyond granting tax benefits, it would better do so directly vis - a - vis pensioners, and on a means tested basis. 2. the crawling exchange - rate band the band is intended to contain, currently within fairly wide limits, possible fluctuations of the rate of exchange. it is well known that the conditions which brought about the creation of the band disappeared long ago : · initially the band served as an advanced version of the exchange rate, as a nominal anchor for inflation. the exchange rate has not had this role to play for many years ; · then

win this war, we must be united, committed, focused, and vigilant. we are fighting for security, peace, and stability of our nations, the safety of our people, and the future of our children. the stakes are simply too high ; losing is definitely not an option. this is the one big fight we should invest in to win. on behalf of my colleagues at the anti money laundering council therefore, i thank the european commission represented by ambassador macdonald ( let us give them a big hand ) for their valuable support. and once again, let us congratulate all the participants to the “ training for trainors program ” for their commitment to broaden the network of people fighting money laundering and terrorist financing in our country. together, let us continue to broaden support and fortify our position in the fight against money laundering and terrorist financing. thank you all and good day. maraming salamat and mabuhay!