At the end of the day, the vision is an industry that is trusted by those who use its services, untainted by crime and abuse, and exemplary of honest, responsible and upstanding corporate citizens. Experience and history have shown us that, these preconditions made business sense and over the long run ensure the sustainability of the industry. The theme of this Conference, “Scaling Up Excellence – Creating Opportunities while Mitigating Risks” appropriately sums up the challenges we face today in the MSB industry. Rapid change is the new normal in today’s dynamic world. The global interconnectivity, the impact of regulatory changes and new technologies are all combining to transform the landscape of the MSB industry, not just within the region, but also internationally. Success for money services businesses in today’s challenging environment will hinge on the ability to adapt to new demands, while making the most of new growth opportunities that come with change. I take recognisance that among the countries represented here today, we all face somewhat different challenges and we are likely at different stages of action. I know with certainty, however that we all agree inaction is not an option as the world changes around us. I hope  BIS central bankers’ speeches  3  that this Conference will encourage us to move forward with greater confidence and determination, equipped with deeper knowledge and a better appreciation of the priorities that we need to manage and the paths that we can take to achieve our shared objectives for the industry.

Operational systems and controls, including mechanism to protect consumers’ interest and prevent criminal activity, can vary considerably between entities and jurisdictions. With typically hundreds or more money services entities in most countries, such diversity presents a unique set of challenges for money services businesses and regulators seeking to put in place the necessary frameworks to manage and mitigate risks associated with the business. In the more recent period, money services businesses have been confronted with increased challenges from heightened global concerns with crimes committed cross-border and  BIS central bankers’ speeches  1  transnational money laundering. The cash-based nature of MSB transactions, global reach of remittance networks, and customer verification processes, if not properly managed would render MSBs susceptible to money laundering threats. Heightened regulatory scrutiny over money laundering controls and heavy penalties meted out by regulators might prompt banks to review their relationships with MSB companies. Some banks have withdrawn banking facilities provided to MSB companies, creating significant difficulties for large numbers of MSB companies that are doing legitimate business. On the other hand, as the bar is raised for MSBs to strengthen AML procedures, there is a concern over the unintended consequences that this might exclude certain segments of society from access to the formal financial system. Worse, it pushes more transactions to the informal or illegal channels. I raise these observations to highlight two points which I thought are relevant to this Conference.