'Hong Kong is a key international financial centre and one of the world's freest economies. We in Hong Kong realize that our strengths lie in the integrity of our financial systems. Therefore, we are fully committed to and always vigilant in countering money laundering,' explained Mrs Ip.

The FATF meeting is being held to assess developments in its on-going review of non-cooperative countries and territories and to discuss the work of the coming year. Presiding at the meeting in her capacity as President of the FATF was Mrs Clarie Lo, Hong Kong's Commissioner for Narcotics, who assumed her role in July, 2001. Hong Kong has been a member of the FATF for eleven years and this marks the first occasion a non-OECD member has taken over the role of the President of the FATF.

Mrs Ip was speaking to an audience of over 280 comprising policy makers, experts in the fields of finance, legal and legal enforcement from member jurisdictions, as well as representatives from international organizations including the IMF, the World Bank and the United Nations.

She explained: 'In an effort to continuously improve our anti-money laundering regime, new legislation requiring money changers and remittance agents to identify customers and keep transaction records was introduced and came into effect in June 2000 and we have also recently introduced a bill to enhance the confiscation provisions and penalties on money laundering offences. It is now being scrutinized by the Legislative Council, the law making body of Hong Kong.'

The Secretary for Security continued to stress that Hong Kong was determined to maintain and work in close partnership with foreign jurisdictions to combat money laundering. The government has entered into mutual legal assistance agreements with 12 other jurisdictions and has 'initialed' agreements with five more countries. In addition, Hong Kong has signed surrender of fugitive offenders treaties with 13 jurisdictions.

The next Plenary meeting is due to be held in Hong Kong from January 31 to February 2, 2002.