presentation is to first clarify what we mean by “ financial literacy ”. in the conventional definition, “ financial literacy ” is seen as “ the ability to make informed judgments and to take effective decisions regarding the use and management of money ”. persons that are financially literate should have the capability to make personal budgets, balance current spending and saving for the future ; manage credit and debt ; assess the needs for insurance and protection, and evaluate risks and return involved in different savings and investment options. as such, financial literacy is a fundamental tool for all of us, in our diverse capacities as students, employees, consumers, savers, investors ; in short, it is a tool for all responsible citizens. why the central bank you may ask, why should the central bank be so concerned with financial literacy? well, the answer is that in addition to monetary policy, regulation of the financial system, and management of the country ’ s external reserves, the central bank ’ s mandate includes promoting public understanding of the financial system and ensuring that customers get a fair deal. this is the justification for the bank ’ s creation of a financial services ombudsman ; it is also a most important reason for our involvement in the delivery of financial education. but there are other factors that justify the bank ’ s involvement in the programme : • we are in an ideal position to spearhead this initiative because, for the bank, the confusion between information and advertising does not arise. • we have the credibility to provide unbiased and impartial information ; and • with our overview of the monetary system, we are in the best position to see the gaps and problems in the market. financial literacy can also facilitate the efficient operation of the market economy in general and of monetary policy, in particular. for example, knowledgeable consumers promote competition among financial and non - financial firms which benefits the economy as a whole. experience also shows that astute consumers are less vulnerable to fraud and abuse than the financially uneducated. what ’ s the programme strategy first, let me tell you what the programme is not. it is not a programme of central bank lectures or of a series of advertisements in the media. while central bank staff will deliver lectures in certain circumstances, given our expanded responsibilities, we don ’ t have the capacity to conduct such a programme by ourselves. also, while the programme will make use of the media, this will be only one aspect and not the most important at that. the model is for the central bank to

that, in january 2015, trinidad and tobago will be the first caribbean jurisdiction to undergo the fourth round mutual evaluation utilizing the revised financial action task force ’ s ( fatf ) forty recommendations. in this regard, trinidad and tobago is inter alia required to demonstrate cooperation and coordination among all stakeholders at the national level. while the signing of this mou and other forthcoming agreements will definitely help us to bridge gaps that previously impeded our aml / cft efforts, the fourth round is rigorous, time - consuming and will call for considerable resources, both technical and financial. the central bank is concerned that the national aml / cft committee, which plays a crucial role in enabling national stakeholders to work with each other to combat money laundering and terrorism financing, has not met since july 2013. we are of the view that this committee needs to expeditiously recommence its activities, given the extremely short timeframes in which trinidad and tobago has to remedy its third round deficiencies as well as prepare for the fourth round. as financial regulators, we have a shared responsibility when it comes to the effectiveness of the regime in place to protect our country and its citizens from organized financial crime. the law enforcement authorities also have a responsibility to adapt their efforts and capacities. in closing, ladies and gentlemen, the challenges facing financial policymakers are daunting but we must maintain the momentum for undertaking courageous and bold reforms of our financial system. this is a journey we must make collectively, and the signing of today ’ s mou is an excellent opportunity to make further progress. both the sec and the central bank are demonstrating that we are incorporating international best practices into our own regulatory and supervisory regimes. the central bank certainly looks forward to increasing collaboration with the sec and with the fiu in the year ahead. i end as i began, with a number : we have only 360 days to prepare for the fourth round mutual evaluation scheduled for 2015. i thank you. bis central bankers ’ speeches