US committed to strengthen its ties with emerging markets

Washington: The US is committed to strengthen its ties with emerging markets including India on key priorities such as facilitating investment, combating money laundering and terrorist financing especially against Islamic State outfit, a top American official has said.

"We're committed to building on the progress that we've made in cooperating with emerging market partners including Brazil, Argentina, India and Mexico on key priorities such as facilitating investment, improving the implementation of tax policies, promoting financial inclusion and combating money laundering and terrorist financing," US Treasury Secretary, Jacob Lew said yesterday.

"We must continue to combat terrorist financing, corruption, money laundering and other financial crimes," he said.

Lew, 60, also said to prevent a repeat of the financial crisis, there is a need to continue to lead efforts to reform the international financial regulatory system.

"The Treasury is strengthening its anti-money laundering and counterterrorist financing rules at home working through the financial action task force to improve enforcement globally and partnering with countries to combat terrorist financing specifically against ISIL," Lew said.

He also said that the US and China, as the two largest economies, have a unique responsibility to work together to advance shared prosperity.

"As the two largest economies, the United States and China also have a unique responsibility to work together to advance shared prosperity, maintain a constructive global economic order and make progress on critical challenges like climate change," Lew said in his remarks to the Council on Foreign Relations (CFR).

Lew called for modernisation and reform of International Monetary Fund (IMF).

"We must work with our partners to further modernise the IMF, allowing it to intensify its scrutiny of critical issues like exchange rates, current account imbalances and shortfalls in global aggregate demand," he said.

"Because more information means better policy cooperation and more efficient financial markets, the IMF should continue to promote greater transparency among its members when it comes to economic data, especially as it relates to foreign reserves," he said.

Lew said the US must also with its partners make the World Bank and the regional development banks more efficient and effective.

He said to prevent a repeat of the financial crisis, there is a need to continue to lead efforts to reform the international financial regulatory system.

"With many of the critical standard-setting reforms in place, the focus must shift to comprehensive and consistent implementation and close attention to emerging threats," he said.