Yet no amount of supervision can substitute for the industry being similarly committed to this cause. 20 In this regard, I am happy to note that the ABS has published additional guidance on AML/CFT earlier this year. This demonstrates that there is ownership amongst financial institutions to ensure that the framework that is in place is translated into meaningful application on the ground. 21 On MAS’ part, we will continue to proactively engage the industry on key issues and developments. Prior to the publication of the NRA, we had invited some of you to a focus group discussion to validate the findings not just relating to banks, but of other sectors as well. More recently, MAS released a report on the private banking industry, setting out key observations and supervisory expectations, so as to promote broader sharing of best practices. I understand that the report has been well-received by the industry. I should add that while the report relates to private banking activities, many sound practices are relevant for other customer-facing business lines. I therefore strongly encourage all financial institutions to leverage on the report to benchmark their controls, and to put in place enhancements where relevant. 22 I had mentioned about deepening manpower capabilities. In this regard, competency building is imperative, to uplift AML/CFT standards amongst industry professionals. I commend the ABS for its suite of training options on AML/CFT, ranging from thematic workshops, classroom trainings, to seminars such as this.

Monetary and financial stability The global financial system has developed at an unprecedented pace in the last two or three decades. During this time, many countries have undergone significant processes of financial liberalisation that have contributed to deeper and wider markets, in terms of both the number of participants and the assets traded on them. In the international sphere, financial liberalisation has led to a growing number of countries gaining access to global capital markets and to a stepping up of the economic and financial links among different regions. Technological progress has also played an important role. The ability of market participants to obtain and process vast amounts of information almost instantaneously and to conduct complex transactions at low cost has grown enormously. In short, all these changes have significantly increased the possibilities for risk-sharing among economic agents. And, as such, there is ample consensus that this process of financial deepening brings tangible benefits for businesses, households and governments alike. There is little doubt either that this phenomenon will continue its course over the foreseeable future. In parallel to the changes on the financial landscape, we have also witnessed a remarkable performance by our monetary policy frameworks in terms of attaining and maintaining low and stable inflation, with noticeable effects on economic welfare. I believe that those achievements are largely permanent. I further consider that, as stressed by Alan Blinder in the introduction to his insightful paper, the debate over some of the core principles for sound monetary policy practice seems to be resolved for now.