By definition, this kind of transition involves structural economic changes that affect practically all economic sectors and activities; the investments required to achieve this transformation of the economy are huge and demand a significant mobilisation of financial resources. The transition to a low-carbon economy affects the financial sector in two ways. First, because of the financial risks that climate change and the transition to a low-carbon economy entail. Second, due to its role in channeling the funding needed to carry out the large investments required to comply with the Paris Agreement. Obviously, this transition involves both challenges and opportunities for the financial sector. In terms of opportunities, it is clear that the activity of banks in relation to green finance is growing forcefully. Financial institutions are actively issuing green bonds or syndicated loans related to sustainable finance. In addition, banks are increasingly offering other types of services to their clients. According to the Risk Assessment Questionnaire carried out by the EBA (European Banking Authority) in June 2019, 90 % of the banks responding to the questionnaire have developed or plan to develop green products and/or services based on environmental considerations, of which the most popular products would be energy-efficient mortgage loans, followed by commercial real estate loans and green car loans.6 Although in recent years there has been progress in the development of new products, with green bonds the most developed green financing instrument, the scale of the investment challenge remains significant. According to the European Commission7, to achieve the EU's 6  EBA (2019).

Last but not least, let me say something about capability and capacity building in combating ML/TF. Private sector bodies such as ACAMS are important in the training of AML/CFT specialists, and will certainly complement the internal programmes of financial institutions. The need to deepen capabilities and enhance capacity applies equally to us as a regulator and to law enforcement agencies. 31. One newer development is the greater use of technology tools and solutions including in the area of data analytics. I know many of you, in your respective firms, are already tapping on technology tools to improve your ability to detect fraud or unusual activities. Some of you are aware of the ongoing discussions in Singapore to develop utilities that can streamline “KYC” processes and uplift the overall quality and consistency of such checks and customer onboarding. We can expect the increased use of technology especially in the areas of AML/CFT screening and risk monitoring. 32. As a financial regulator, the MAS is able to look for linkages and patterns across financial institutions. These may include emerging risks or irregular relationships, or networks and linkages between entities or actors. MAS is therefore also investing in the use of technology and analytics. Recently, we announced the formation of a dedicated Data Analytics Group which will complement and support the analytics units in our supervisory teams. This internal analytics “hub-and-spoke” model will deepen our “SupTech” capability, in turn allowing MAS supervisors to better tap the “RegTech” capability that many FIs have embarked on.