History has shown that criminals will exploit regulatory weaknesses. That's why BCCI had such important operations in Luxembourg and the Cayman Islands. And why the late Robert Maxwell conducted some of his murkiest activities in Liechtenstein. Canada has some experience in this so-called regulatory arbitrage. Consider some of the mutual funds looted by Robert Vesco, the best-known financial fraudster of the 1970s who is believed to be currently hiding in Cuba. Two of the looted funds were apparently registered in Canada to avoid the scrutiny of the US Securities and Exchange Commission. To guard against being victims of such regulatory arbitrage, our anti-money laundering regulations will need to be in tune with those in the United States. Otherwise, we will be vulnerable. Criminals after all are like water they seek the path of least resistance. The challenge will be to develop strategies which are as effective as those in the United States, while remaining consistent with Canadian practices and traditions.