Muhammad bin Ibrahim: Readying the financial sector amid the evolving war on terrorism financing Welcoming remarks by Mr Muhammad bin Ibrahim, Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Third Counter-Terrorism Financing Summit 2017 "Powering Regional Solutions Through Strengthened Alliances and Innovations", Kuala Lumpur, 22 November 2017. * * *  “Readying the financial sector amid the evolving war on terrorism financing” Welcome to Sasana Kijang, Bank Negara Malaysia. We are pleased to host the 3rd Joint Regional Counter-Terrorism Financing Summit 2017 with our partners, the Australian Transaction Reports and Analysis Centre (AUSTRAC) and Pusat Pelaporan dan Analisis Transaksi Keuangan (PPATK) Indonesia. The Summit, which was first held in 2015 in Sydney, has now become a hallmark event for many across the region; policy makers, law enforcement personnel, the financial intelligence community and financial industry players. The Summit is a cumulation of the year’s work in producing impactful outcomes for counter terrorism financing. With over 400 participants from over 30 countries and international organisations, this Summit is a testament to our commitment and determination to strengthen our cooperation in combating undesirable financial activities across the globe. The nature of terror and terrorism financing is much more complex, say, compared to ten years ago. Numerous new methods to raise, move and store funds, were conducted through smallscaled transfers via banks or money services businesses. And in some cases, via physical transportation of cash. Recent advancements in financial technology provide new opportunities for anonymity.

This is consistent with the Terrorism Financing Regional Risk Assessment findings at the 2nd CTF Summit in 2016 in Bali, where one of the priority actions identified was for FIUs to improve the visibility and insights into the nature of terrorism financing in the region. The idea is intended to help FIUs gain better insights into the role of financial and transit hubs in regional and international terrorism financing networks. Closer international cooperation Another area to ensure an effective mitigating strategy requires closer regional and global cooperation, particularly in the sharing of intelligence and technical know-how. Terrorism and terrorism financing are global issues that demand global solutions. Sharing of intelligence and expertise across borders will go a long way towards enhancing the effectiveness of our risk management framework. In this regard, the various working groups under the CTF Summits, the Financial Intelligence Consultative Group and International Community of Experts have done commendable efforts and initiatives in building capacity and sharing operational experiences in the region. This must continue to be strengthened given the challenges that we will face. Conclusion The fight against terrorism financing is an on-going battle that will continue to evolve in line with the ever-changing landscape of the financial industry. In the era of rapid technological advancements, it is essential that the financial sector’s risk management strategy remains agile in order to mitigate emerging risks.