Although developments in bank credit continue to reflect the lagged relationship with the business cycle, credit risk and the ongoing adjustment of financial and non-financial sector balance sheets, the monetary policy measures in place since June 2014 are increasingly filtering through to support borrowing conditions for firms and households and thereby credit flows across the euro area. To sum up, a cross-check of the outcome of the economic analysis with the signals coming from the monetary analysis confirmed the need to preserve the very substantial amount of monetary support that is necessary in order to secure a return of inflation rates towards levels that are below, but close to, 2% without undue delay. Monetary policy is focused on maintaining price stability over the medium term and its accommodative stance supports economic activity. As emphasised repeatedly by the Governing Council, and as strongly echoed in both European and international policy discussions, in order to reap the full benefits from our monetary policy measures, other policy areas must contribute much more decisively, both at the national and at the European level. The implementation of structural reforms needs to be substantially stepped up to reduce structural unemployment and boost potential output growth in the euro area. Structural reforms are necessary in all euro area countries. The focus should be on actions to raise productivity and improve the business environment, including the provision of an adequate public infrastructure, which are vital to increase investment and boost job creation.

We have addressed, since then, most of the recommendations set out in the Mutual Evaluation Report (or MER), including the only Non-Compliant rating in terms of SR IX by implementing the cross border cash transportation declaration system since January 2010. Moving forward, considering the rising threat of cross border money laundering and greater emphasis on the effectiveness of the AML/CFT framework, a more strategic approach is undertaken. This is also undertaken as a tool to support the Malaysia’s National Key Result Areas (NKRAs), particularly the first and the second NKRAs, i.e., initiatives to reduce crime and combat corruption. For this, Malaysia has formulated (in 2009) a 3-year National AML/CFT Strategic Plan 2010–2012 as a strategic tool to achieve the desired results of AML/CFT regime. The Strategic Plan includes a set of strategies to achieve specific Desired Outcomes in four key areas; focused implementation; enhancement of the legal framework; improvement of the institutional framework; and capacity building. The Plan covers not only the aspect of preventive measures for financial institutions and designated non-financial businesses and professions (DNFBPs), but also the aspects of legal, financial intelligence and law enforcement, as well as domestic and international cooperation. As the Strategic Plan will be officially rolled out soon, Bank Negara Malaysia and the relevant agencies have started to implement the action plan in stages. The ML/TF investigation and prosecution have been intensified. To date, there have been 94 money laundering cases at various stages of prosecution, with more than 3000 charges involving proceeds amounting to RM1.2 billion.