By 20192, cyber-crime could reach up to $ trillion, which is three to four times the total banking asset in Malaysia3. Domestically, we saw persistent increase in cyber security incidents reported to the Malaysia Computer Emergency Response Team with the majority of these cyber incidents being related to fraud and intrusion. The threat is imminent not only in the private sector, but also in the public sector. Enhanced security framework and proper mitigating strategy and action plan is vital in order to manage the risk and alleviate the impact of any potential attack. A research done in 2016 in the US showed that only 37% of the financial services industry have a Cyber Security Incident Response Plan. I believe that our financial industry needs to be in greater state of preparedness on this. Emerging Terrorist Financing Threats Terrorism financing continues to pose significant threat to the financial industry, with larger ramifications that reverberate to political stability and the loss of lives. Importantly, the terrorism financing threat continues to evolve alongside technology. While traditional methods such as mule accounts and cash smuggling continue to be the main feature of terrorism financing, terrorist organisations and actors have not been slow in exploiting new technologies and financial 2/4  BIS central bankers' speeches  products. Social media platforms, online crowdfunding websites and e-wallet services are increasing in popularity among terrorists to gather their resources, especially with the increasing trend in remote radicalisation and “lone-wolf” actors.

Most importantly, the oversight and support from senior management and Board of Directors of the institutions. Before I conclude my speech, allow me to share with you some developments from the regulatory perspective that you can expect in the near future. As you may be well aware, our national ML/TF risk assessment (NRA) is currently in progress and is expected to be concluded by year end. The results of the assessment will be accompanied with some guidance from regulators. This should be used as a basis in your institutional risk assessment to eventually align your operations on a risk-based approach. You can also expect introductions and amendments to AML/CFT policies, in response to the NRA as well as to new areas relating to cryptocurrencies and e-KYC. From the enforcement perspective, another notable change to expect in the next year is the publicising of financial penalties imposed on financial institutions and information on misconduct resulting in penalties. With the increase in the number of investigations by law enforcement authorities, you should expect more significant demand for information and collaboration from your institutions. Needless to say, timely and accurate responses are highly required and of paramount importance. A sound public-private partnership is essential to achieve the ultimate objective of an effective AML/CFT regime. On that final note, I would like to once again thank CONG, AIF and all of you here for attending this conference. I wish you all the best and let us all contribute hand-in-hand towards building a safer and more secure environment. Thank you.