The financial institutions can continue to play a bigger role in contributing towards reducing crime and corruption, especially through the reporting of Suspicious Transaction Reports (STRs). To date, the STR received from reporting institutions have contributed to about 300 ML/TF investigations. The STRs, which is “trigger alert” for any ML/TF activities going through the institutions, has steadily increased (52% annually) due the overall improvement in compliance practice among reporting institutions. I wish to stress that having strong AML/CFT practice is not only pertinent to ensure the country’s AML/CFT risks are carefully managed, but it is also important for the financial institutions to lower the cost of doing business arising from AML/CFT investigations and cases. Concerted effort by law enforcement agencies has resulted in an average annual increase of 86% in cases under prosecution and forfeiture without prosecution. Without having adequate controls and system in place, financial institution will face challenges in responding to the increasing demand from law enforcement agencies. In addition, it is also observed that international financial institutions have strengthened AML/CFT monitoring of their counterparts, and are taking actions, such as enhanced due diligence or cease correspondent relationship, if the need arises. These would not only affect the cost of doing business, but also has an impact on the level of competitiveness at both domestic and international levels. Concluding remarks To conclude, I believe that the sharing of new trends and developments would tremendously benefit all of us today to have a better perspective of this global issue.

The deposits remain in the accounts only for a limited period of time, where the runners or the agents will withdraw the cash to be further wire-transferred and/or smuggled to another neighbouring country, as instructed by the syndicates. Along with this example, it is also observed that transferring illicit fund overseas has evolved into another preferred laundering method. This is especially so for funds involving prominent personalities, and large value funds arising from illegal investment, illegal deposit taking and other fraudulent activities. All financial institutions are also urged to have adequate controls in place to manage the risks arising from these activities that could potentially affect their operation and reputation. Another notable global AML/CFT trend is the growing emphasis on the result and effectiveness of the implementation of AML/CFT measures. Measuring effectiveness has been a component in the current assessment of national AML/CFT framework undertaken by the FATF, FATF-Style Regional Bodies (FSRBs) and multilateral agencies, including the IMF and the World Bank. In fact, in the recent FATF initiative to identify jurisdictions with significant ML/TF strategic deficiencies, much emphasis has been given as to how well the jurisdiction implemented the AML/CFT measures. This is ultimately measured by the overall result of the implementation. The result is used to measure the effectiveness of every component of AML/CFT measures covering the aspect of legal, preventive measures, financial intelligence and law enforcement, as well as domestic and international cooperation.