There are many areas in which the industry could benefit from the latest in technology. 1. Firstly, the enhancement of transaction monitoring and reporting system through the use of advanced big data mining and analysis method. The advancement in artificial intelligence and machine learning enables us to collect and analyse data in a way that was not possible before. This allows us to gain new and important insights that will contribute significantly to the prevention of financial crimes. Furthermore, the ability to tap into vast amount of information also helps promote better client management which would encourage wider 1/4  BIS central bankers' speeches  financial inclusion and tailored customer service; 2. Secondly, the use of technology to complement and support the compliance function especially in the area of higher risk. A good example of this is demonstrated through the use of digital verification to overcome challenges surrounding non-face-to-face verification and transaction. Online identification recognition and biometric verification such as facial, voice and fingerprints recognition offer a new layer of security and potential increase in efficiency for the financial sector. Such advanced systems have the potential to strengthen the existing framework and process to minimise fraud and error. It is all too common to view technology as a disruption and a threat to the way we are used to doing things. Nevertheless, when technological change is managed appropriately and its related risks are mitigated, we can turn it into an enabler of progress for the financial industry.

While efforts can be made to strengthen the legal and supervisory framework, from the financial industry perspective, strong understanding of risks and effective application of risk mitigation, including commensurate application of the AML/CFT measures are critical for the meaningful conduct and practices of financial institutions. This is particularly important in the conduct of CDD and transaction monitoring that will facilitate strong financial intelligence and reporting, to achieve the enforcement objectives. Authorities are committed to continuously enhance the current legal and supervisory framework. At the same time, financial institutions and other reporting institutions must be robust in their current practices and compliance. Technological Development Everyone agrees that technological advancement is moving at a pace far greater than ever before. For the financial industry to maximise the overall benefit of this progress, we must acknowledge both the advantages and the risks of such rapid technological advancement while keeping abreast with the latest innovations. New devices, software, applications and inventions will continue to emerge. The challenge is for us to keep pace and ensure that industry players understand the potential benefits as well as the risk they bear. As the financial industry evolves into digital, it is inevitable that the industry becomes vulnerable to various new threats and risk factors, especially in the domain of financial crimes and terrorism financing. In the effort to mitigate these risks, it is important that we embrace technology and use it to our advantage in order to strengthen our defences against financial crimes and terrorism financing.