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.

practices. standards focusing on capital adequacy and solvency and key areas of corporate governance are now an integral part of the insurance regulatory framework in place for all insurance firms and brokers operating in the kingdom. the establishment of international standards and their implementation has bolstered bahrain ’ s reputation as a regional centre where sound practices prevail. this has encouraged many insurance and reinsurance firms to choose bahrain as a base. the central bank of bahrain has also put in place a framework allowing for the establishment of captive insurance firms. this initiative by the cbb is the first of its kind in the middle east region, aiming to fulfill the insurance needs of major industrial, oil, and service firms that seek to establish their own insurance companies. bahrain succeeded in 2006 in attracting tabreed company as the first captive insurance company, licensed in the gcc. the lack of a specialised centre in the region aimed at fostering the development of the captives market led to the cbb ’ s initiative in this regard. furthermore, bahrain has also attracted takaful and retakaful insurance businesses, who are benefiting from the well structured regulatory environment. the cbb benefited from its successful experience in the field of islamic banking, supporting the successful implementation of sound regulatory framework for takaful businesses. there are several common areas shared by takaful and islamic banking. in addition, the cbb identified the need by islamic banks to transact with takaful firms to meet their insurance requirements. bahrain is a founder and an active member in many of the islamic financial standards committees. these committees are a reflection of the market realities and the need for change in an evolving industry. there is a strong demand by clients for takaful products, at a time when firms rendering such services in the arab market are still relatively few. ladies and gentlemen, the theme of today ’ s conference is of special significance considering the global challenges faced by the arab insurance markets to integrate, and work towards consistency in legislations. it also lays the foundations for insurance companies to enter new markets and stimulate integration to pave the way towards one arab insurance market that is capable of competing globally. i am grateful to bahrain ’ s insurance community for its substantial contributions and sincere efforts, and again wish to thank the organizers and participants in this important conference wishing you all successful and fruitful deliberations to further contribute in developing the integration of the arab insurance industry.