First, both regulators and MSB players need a strong knowledge base to enable us to respond effectively to risks inherent in the money services business. The implementation of a risk-based approach to counter money laundering requires a solid understanding of the sources and nature of risks that can arise in the business, and how these risks are changing over time as new products, business models and delivery channels are introduced into the market. The better we understand the risks, the more likely we will be able to respond to the risks in an intelligent and proportionate manner, that balances risks with the objective of preserving inclusive access to money services. In all these efforts the key is collaboration. As expectations continue to increase for MSBs to meet higher standards of compliance and risk management, the industry has much to gain by coming together to build expertise and capacity through training, sharing of best practices, and a deeper level of engagement with the regulators. The industry also need to collectively weed out the bad apples among their midst. Similarly, the cross-border dimensions of money services business also underscore the benefits of greater cooperation and collaboration among regulatory authorities to share knowledge, intelligence and experiences that can contribute towards strengthening the effectiveness of regulatory regimes governing the MSB industry. Secondly, we need to have an effective system of incentives working together to encourage the desired behaviours. Ultimately, this will come down to clear and sensible rules, and credible enforcement.

Increasingly, money services business provides and support tourism, business travel and cross-border trade activities in a more globalised world economy. According to a World Bank report, it is estimated that nearly 1 out of 7 persons is a migrant, reflecting the large and diverse diaspora community in the world today. Worker remittances to developing countries were in excess of USD400 billion last year and represent a key source of external resource flows. These flows support economic growth in developing countries, far exceeding official development assistance. More than USD 1 trillion was spent on global business travel expenditure in 2013 and more than 1 billion in international tourist arrivals are recorded each year. In 2013, business activities supported world trade volume of over USD 23 trillion. All of these developments have created new and greater demand for remittance, currency exchange and other financial services that can be offered by money services businesses. The industry itself has also become more diverse. Advancements in technology have enabled new business models, offering new product and service, innovations and forming of new alliances. These enhancements have the potential to further lower cost and increase convenience to consumers. Global money services companies exist alongside niche and smaller companies that focus on serving local communities. This has fostered competition and helped to fill market gaps. Today, money services are provided through a network of branches and agents of money services entities, retail outlets, post offices, banks and mobile channels. Operational standards are also diverse across entities.