Seminar on Current Developments in Monetary and Financial Law
Washington, D.C., May 24-June 4, 2004

Last Updated: February 10, 2006

The 2004 Seminar on Current Developments in Monetary and Financial Law was held at IMF headquarters in Washington, D.C. during May 24-June 4, 2004. Since 1988, the IMF Legal Department and the IMF Institute have been holding biennial seminars on topical issues relating to monetary and financial law. As shown below, the 2004 Seminar examined selected developments in: the IMF and the World Bank, central banking, banks and other financial institutions, sovereign debt restructuring, law reform in Indonesia, financial technology, anti-money laundering and combating the financing of terrorism, exchange arrangements, capital account crises and liberalization, and conflicts of interest and market discipline in the financial sector.

As in the past, 40 invited central banks and regional monetary institutions nominated heads of legal departments or senior lawyers of the respective institutions as participants. Attendance by persons other than participants, speakers, and the staffs of the IMF and World Bank Group was by invitation only.

The papers presented at the seminars held during 1988-96 have been published by the IMF in Current Legal Issues Affecting Central Banks, Volumes 1-5. The papers presented at the 1998 and 2000 Seminars have been published in Current Developments in Monetary and Financial Law, Volumes 1 and 2.

Volume 3 and Volume 4 are now available.

Queries regarding the 2004 Seminar may be addressed to INSINFO@imf.org.

WEEK 1

Monday, May 24

8:30-9:15

Registration and Orientation
Room B-702, 700 19th Street ¹

9:15-9:30

Welcome address
Mr. Andrew Feltenstein, Assistant Director, IMF Institute

I. DEVELOPMENTS AT THE IMF AND THE WORLD BANK
Moderator: Mr. James Jones, Assistant General Counsel, Legal Department, IMF

A.M.

9:30-10:30

Current Legal Aspects of Monetary Sovereignty
Mr. François Gianviti, General Counsel, IMF

10:30-11:20

The Obligation of Members to Provide Information to the IMF Under Article VIII, Section 5: Recent Developments
Mr. Ross B. Leckow, Assistant General Counsel, Legal Department, IMF

11:20-11:40

Break

11:40- 12:30

The IMF's Work on Financial Stability
Ms. Anne-Marie Gulde-Wolf, Division Chief, Monetary and Financial Systems Department, IMF

12:30- 2:00

Lunch break

Moderator: Ms. Deborah Siegel, Senior Counsel, Legal Department, IMF

P.M.

2:00-3:30

The IMF's Jurisdiction on Current Account Convertibility
Mr. Hector Elizalde, Assistant General Counsel, Legal Department, IMF

3:30- 4:10

Recognition of Governments Under International Law and at the IMF
Mr. Ramanand Mundkur, Counsel, Legal Department, IMF

4:10- 4:40

Break

4:40- 5:40

Recent Developments in Corporate Governance at the World Bank
Mr. Scott White, Deputy General Counsel, World Bank

6:00

Reception at the IMF Gallery, Second Floor

Tuesday, May 25

II. WORKSHOP ON CENTRAL BANKING - (A)
Moderator: Mr. Ross Leckow

A.M.

9:30- 10:45

Central Bank Governance, Independence and Accountability:
Conceptual Framework
Mr. Tonny Lybek, Senior Economist,
Monetary and Financial Systems Department, IMF

10:45-11:15

Break

11:15-12:30

Monetary Policy—Instruments, Transmission Mechanisms, and Objectives
Mr. Roy Baban, Technical Assistance Advisor, Legal Department, IMF

12:30-12:45

Group Photo - IMF Gallery, Second Floor
Mr. Gianviti, Mr. Feltenstein, Participants, IMF Staff

12:45-2:00

Lunch

Moderator: Mr. Roy Baban

P.M.

2:00-3:00

Interaction of Monetary and Exchange Rate Policies
Ms. Gilda Fernandez, Economist, Monetary and Financial Systems Department, IMF

3:00-4:00

Interaction of Monetary and Fiscal Policies; Why Central Bankers Worry about Government Budgets
Mr. Paul Hilbers, TA Area Chief, Monetary and Financial Systems Department, IMF

4:00-4:30

Break

4:30-5:30

External Debt Management and Rescheduling
Mr. Jian-Ye Wang, Deputy Division Chief, Official Financing Operations Division, Policy Development and Review Department, IMF

Wednesday, May 26th

III. WORKSHOP ON CENTRAL BANKING - ( B )
Moderator: Mr. Ross Leckow

A.M.

9:30-10:20

Accounting, Auditing and Dividend Distribution in Central Bank Laws
Mr. Kenneth Sullivan, Senior Financial Sector Expert, Monetary and Financial System Department, IMF

Panel on Central Bank Law

Panelists:

The Three Pillars of Central Bank Governance—Towards a Model Central Bank Law or a Code of Good Governance?, by Prof. Fabian Amtenbrink, University of Groningen, Netherlands
Mr. Barend Jansen, Technical Assistance Advisor, Legal Department, IMF
Mr. Tony Lybek, Senior Economist, Monetary and Financial Systems Department, IMF
Ms. Gabriela Rosenberg, Counsel, Legal Department, IMF
Mr. Bernhard Steinki, Counsel, Legal Department, IMF

Moderator: Mr. Ross Leckow

10:20-11:00

Session I—Objectives and Functions

Objectives
    Goal, target and instrument autonomy
Functions
    Monetary policy
    Exchange rate policy
    Lender of last resort
    Issuance of currency
    Payments systems
Reserve management
    Supervisory role
Prohibited activities

11:00-11:30

Break

11:30-12:30

Session I continued

12:30-2:00

Lunch

P.M.

2:00-2:30

Session I continued

2:30-3:30

Session II—Relations with Government and Accountability

    Fiscal agent
    Advisor
    Limitations on lending to government
    Resolution of disputes with government
    Immunity from legal action

3:30-4:00

Break

4:00-4:45

Session III—Governing Structure

    Board of Directors
    Governor as chief executive
    Committees

4:45-5:30

Session IV—Transparency

    Necessity
    Mechanism
    IMF Code of Good Practices on Transparency in Monetary and Financial     Policies

Thursday, May 27th

IV. SOVEREIGN DEBT RESTRUCTURING
Moderator: Mr. Sean Hagan

A.M.

9:30 - 10:20

Inside the Black Box: How Should a Sovereign Bankruptcy Framework be Structured?
Mr. David Skeel, University of Pennsylvania

10:20 - 11:10

The Hold-Out Creditor Problem in Sovereign Debt Restructuring
Mr. Lee C. Buchheit, Cleary Gottlieb, New York

11:10 - 11:40

Break

11:40 - 12:30

Sovereign Debt Litigation
Mr. Jim Kerr, Davis Polk and Wardwell, New York

12:30 - 2:00

Lunch

V. BANK INSOLVENCY
Moderator: Mr. Ross Delston

P.M.

2:00-2:15

Introduction
Mr. Ross Delston, Consulting Counsel, Legal Department, IMF

2:15-3:00

Institutional Preconditions and Principal Legal Issues Relating to Bank Insolvencies
Mr. Ross Leckow, Assistant General Counsel, Legal Department, IMF

3:00-3:45

Bank Intervention and Official Administration
Mr. J.W. Van der Vossen, Deputy Division Chief,
Monetary and Financial Systems Department, IMF

3:45-4:15

Break

4:15-5:00

The Liquidation of Insolvent Banks
Mr. Seng Chee Ho, Counsel, Legal Department, IMF

5:00-5:45

Bank Insolvencies and Systemic Crises
Mr. David Hoelscher, Division Chief, Monetary and Financial Systems Department, IMF

Friday, May 28th

VI. BANKS AND OTHER FINANCIAL INSTITUTIONS - ( A )
Moderator: Mr. Ross Delston

A.M.

9:30-10:20

Deposit Insurance and Bank Insolvency in a Changing World: Synergies and Challenges
Mr. Michael Krimminger, Federal Deposit Insurance Corporation, U.S.A.

10:20-11:10

Foreign Direct Investment in the Financial Sector of Emerging Market Economies
Mr. Dick Freeman, Federal Reserve Board, U.S.A.

11:10-11:30

Break

11:30-12:30

Supervision of Financial Conglomerates in Europe and the U.S.
Mr. Michael Gruson, Shearman and Sterling, New York

12:30-2:15

Lunch hosted by General Counsel - IMF, Gallery, 2^nd Floor
Address by Mr. Montek Ahluwalia, Director, Internal Evaluation Office, IMF

P.M.

VII. LAW REFORM IN INDONESIA - A CASE STUDY
Moderator: Mr. Sean Hagan

2:30-2:45

Introduction and Overview
Mr. Sean Hagan, Deputy General Counsel, Legal Department, IMF

2:45-3:30

The IMF-Supported Law Reform Program
Mr. Sebastian Pompe, IMF Resident Legal Advisor in Jakarta

3:30-4:00

Out-of Court Corporate Debt Restructuring
Mr. Ceda Ogada, Senior Counsel, Legal Department, IMF

4:00-4:30

Break

4:30-5:00

The World Bank's Involvement in Governance and Reforms in Indonesia
Mr. Anthony Toft, Senior Counsel, World Bank Jakarta Field Office

5:00-5:30

Comments on the Judicial Reform Program in Indonesia
Prof. Dan Lev, University of Washington

5:30-6:00

Discussion

Saturday, May 29    City Tour

WEEK 2

Monday, May 31     Official Holiday - Memorial Day (No Seminar Activities)

Tuesday, June 1

VIII. BANKS AND OTHER FINANCIAL INSTITUTIONS - ( B )
Moderator: Mr. Barend Jansen, Technical Assistance Advisor, Legal Department, IMF

A.M.

9:30-10:20

The Role and Security of Payments Systems in an Electronic Age
Mr. Mark Fajfar, Fried Frank, Washington, D.C.

10:20-11:10

Credit Cards, Information, and Globalization
Prof. Ronald Mann, University of Texas School of Law

11:10-11:40

Break

11:40-12:30

Current Regulatory Approaches to Electronic Money and Other New Payment Mechanisms in the US and the EU
Prof. Anita Ramasastry, University of Washington School of Law

12:30-2:00

Lunch

IX. BANKS AND OTHER FINANCIAL INSTITUTIONS -- ( C )
Moderator: Mr. Roy Baban

P.M.

2:00-3:00

The Regulation and Supervision of Microfinance
Mr. Richard Rosenberg, Senior Advisor, World Bank

3:00-4:00

Islamic Banking
Mr. Ghiath Shabsigh, Deputy Division Chief, Middle East and Central Asia Department, IMF

4:00-4:30

Break

4:30-5:30

The Regulation and Supervision of Informal Remittance Systems
Mr. Samuel Munzele Maimbo, Financial Sector Specialist, World Bank

Wednesday, June 2

X. AML/CFT

A.M.

9:30-10:20

Panel 1: Recent Developments in the IMF Involvement in AML/CFT Matters
Moderator: Mr. Sean Hagan
Panelists : Mr. Jean-François Thony, Assistant General Counsel, Legal Department, IMF
Mr. Nadim Kyriakos-Saad, Senior Counsel, Legal Department, IMF

10:20-11:10

Panel 2: The Revised FATF 40 Recommendations: A Remodeled and Sharper Global Standard
Moderator: Mr. Nadim Kyriakos-Saad
Panelists : Mr. Richard Lalonde, Senior Financial Sector Expert, Monetary and Financial Systems Department, IMF (former chairman of the FATF working group on the revision of the FATF recommendations)
Mr. Alfred Sears, Attorney General of The Bahamas (former Chairman, Caribbean Financial Action Task Force)

11:10-11:30

Break

11:30-12:30

Panel 3: Counter-Financing of Terrorism: a Review of Legal and Operational Issues
Moderator: Ms. Joy Smallwood, Consulting Counsel, Legal Department, IMF
Panelists: Ms. Lynne Walker, Expert Advisor, Al-Qaeda /Taliban Monitoring Team, United Nations
Mr. Jeff Breinholt, Deputy Chief, Counterterrorism Section, U.S. Department of Justice, Reaching the White Collar Terrorist: Operational Challenges

12:30-2:00

Lunch

P.M.

2:00-3:00

Panel 4: Politically Exposed Persons (PEPs): A New Target for Banks' Vigilance
Moderator: Mr. Peter Csonka, Senior Counsel, Legal Department, IMF
Panelists: Mr. Mutembo Nchito, Partner, MNB, Special Prosecutor and Member of the Task Force against Corruption, Zambia
Mr. René Brülhart, Director, FIU, Liechtenstein

3:00-4:00

Panel 5: Shell Banks and Other Offshore Vehicles: An Assessment of the Money Laundering/Financing of Terrorism Risks
Moderator: Mr. Ross Delston
Panelists: Mr. Jack Blum, Partner, Lobel, Novins & Lamont, Washington DC
Mr. Alfred Sears, Attorney General of The Bahamas (former Chairman, Caribbean Financial Action Task Force)

4:00-4:30

Break

4:30-5:30

Panel 6: Financial Intelligence Units: Bridging the Gap Between Financial Institutions and Law Enforcement Authorities
Moderator: Ms. Vida Seme Hocevar, Consulting Counsel, Legal Department, IMF
Panelists: Mr. William F. Baity, Deputy Director, Financial Crimes Enforcement Network Department of the Treasury
Ms. Lynne Walker, Expert Advisor, Al-Qaeda /Taliban Monitoring Team, United Nations

Thursday, June 3

A.M.

XI. EXCHANGE ARRANGEMENTS
Moderator: Mr. Roy Baban

9:30-10:20

The Choice of Exchange Rate Regimens in Fund-Supported Programs
Ms. Laura Papi, Senior Economist, Policy Development and Review Department, IMF

10:20-11:10

Currency Unions-Advantages, Disadvantages, and Empirical Effects
Prof. Min Shi, University of Wisconsin

11:20-11:30

Break

XII CENTRAL BANKS AND THE EXECUTIVE
Moderator: Mr. Bernhard Steinki

11:30-12:30

Varieties of Central Bank-Executive Relationships: The International Experience
Prof. Pierre Siklos, Wilfrid Laurier University

12:30-2:00

Lunch

XIII. CAPITAL ACCOUNT CRISES AND LIBERALIZATION
Moderator: Manmohan Singh Kumar, Division Chief, Fiscal Affairs Department

P.M.

2:00-3:00

Are Debt Contracts to Blame for Output Losses and Capital Account Crises?
Prof. Michael Dooley, University of California, Santa Cruz

3:00-4:00

The IMF and Recent Capital Account Crises: Indonesia, Korea, Brazil
Mr. Shinji Takagi, Advisor, Independent Evaluation Office, IMF

4:00-4:30

Break

4:30-5:30

Strategies and Institutional Reforms to Strengthen Access to Foreign Capital - Issues in Sequencing Domestic and External Financial Liberalization"
Mr. V. Sundararajan, Centennial Group (former Deputy Director, Monetary and Financial Systems Department, IMF)

Friday, June 4

A.M.

XIV. CONFLICTS OF INTEREST AND MARKET DISCIPLINE IN THE FINANCIAL SECTOR
Moderator: Mr. Thomas Laryea, Senior Counsel, Legal Department, IMF

9:30-10:20

The Involvement of Major Banks in the Stock Market Bubble of the 1990's and Associated Scandals in the Capital Markets and Corporate Governance
Prof. Arthur Wilmarth, George Washington University Law School

10:20-11:10

Can the Market Control Conflicts of Interest in the Financial Industry?
Prof. Eugene White, Rutgers University

11:10-11:30

Break

11:30-12:20

Lessons Learned From the Failure of Market Discipline and Regulatory Lapses—How to Prevent Future Busts
Prof. Lynn Turner, Colorado State University (former Chief Accountant of the U.S. Securities and Exchange Commission)

12:20-12:35

Discussion

12:45-2:30

Luncheon hosted by the Deputy Managing Director , Mr. Agustín Carstens
(IMF Headquarters, 2^nd floor, Private Dining Rooms 3 and 4)
Address by a Representative of Participants
Address by Mr. Agustín Carstens