Robust compliance function The compliance function of a financial institution is an important element in mitigating risks of abuse of the financial system, especially financial crime and terrorism financing risks. To this end, financial institutions are expected to ensure that the compliance function is independent and have sufficient authority, stature and resources to perform its function effectively. The required AML/CFT compliance program of each institution must clearly describe and outline the roles and responsibility of different segments of the institutions with respect to its compliance function. In this regard, the principle of collective responsibility between senior managements and compliance officers should be upheld in the case of failure. In compliance, continued vigilance is necessary and required. The 2017 National Risk Assessment, by the National Coordinating Committee for Money Laundering (NCC) and the financial sector, showed that the banking sector continues to face high money laundering risk and medium high terrorism financing risk. The sector records the highest value of cash transactions and high risk customers; and provides the highest number of high risk products compared to other sectors within the financial industry. This reflects the central role of the banking sector in intermediating money flows within an economy. One important compliance function that needs to be undertaken is the identity of the ultimate beneficial owner of companies, assets and financial transactions. Financial institutions need to have controls and procedures to identify, verify and conduct due diligence on the beneficiaries. This must be complemented by a rigorous monitoring process.

It thus aims to effectively meet the information requirements of bankers, financiers, statisticians, economists, researchers and prospective investors as well as increasing awareness of both domestic and foreign users. Moving forward, the website will be linked with other markets to serve as a platform for exchanging information and knowledge beyond our own borders. Ekspo Perbankan Islam dan Takaful adalah satu lagi saluran informasi yang menghubungkan institusi kewangan Islam secara langsung dengan pelanggan. Sehubungan ini, saya menggesa institusi kewangan Islam mengambil kesempatan untuk memasar dan menawarkan produk dan perkhidmatan mengikut keperluan mereka. Saya difahamkan, ekspo pada tahun ini turut disertai beberapa buah negara asing. Sesungguhnya penyertaan mereka ini akan memberi kesan positif kepada usaha-usaha kita untuk menjadikan Malaysia sebagai pusat kewangan Islam serantau. Tuan-tuan dan puan-puan, Usaha kita ialah untuk membangunkan sebuah sistem kewangan Islam sebagai satu proses perantaraan yang dapat menyumbang kearah memperkayakan sumber ekonomi secara menyeluruh bagi menjana pertumbuhan dan pembangunan yang lebih besar. Selaras dengan perkembangan semasa, institusi kewangan Islam perlu bersedia untuk menghadapi cabaran dan peluang dalam memenuhi kehendak ekonomi yang sentiasa berubah. Prospek masa depan dan kejayaan industri perkhidmatan kewangan Islam bergantung kepada gandingan usaha semua pihak iaitu pengawalselia, industri, peserta pasaran dan masyarakat umum. Sehubungan ini, saya ingin mengucapkan syabas dan tahniah kepada AIBIM di atas usaha berterusan untuk menganjur Ekspo Perbankan Islam dan Takaful ini sebagai acara tahunan. Dengan lafaz Bismillahirrahmanirrahim, saya dengan sukacitanya merasmikan pelancaran “Ekspo Perbankan Islam dan Takaful 2004”. Terima kasih. 2  BIS Review 56/2004