As the governor indicated, this isn't tax per se, but there's an analog. Just as people try to arbitrage the global tax system, financial institutions may try to arbitrage the global regulatory framework. As the FSB includes 27 countries, there has been a robust commitment and considerable progress to raising the standards of regulation and supervision in those countries. What we don't want is for other countries not to live up to those standards and then for those standards to get arbitraged.
As part of the FSB's initiative, there's an initiative to ensure that other countries are also living up to those standards. The principal way to do this, somewhat similar to the tax situation, is to get information exchange agreements. To make that concrete, suppose you're a securities regulator in Germany and you're overseeing a company that has activities in, say, an offshore financial centre somewhere else. What you need is an information exchange agreement with that offshore jurisdiction so that the securities regulator in Germany can get a line of sight to the company's activities in the offshore financial sector.
With the support of the IMF, and IOSCO, which is the international standards setter for securities regulators, there has been a robust effort to engage in these information exchange agreements. It's not perfect, but it is working, and a lot of these have been signed. The number of jurisdictions that are not cooperating is very low. By putting focus on this, countries have been brought to the table and they are getting on with it. They are signing those agreements, and that needs to continue.