Adnan Zaylani Mohamad Zahid: Keynote address - Bank Negara Malaysia and the Malaysian Bar Joint National AML/CFT Conference 2019 Keynote address by Mr Adnan Zaylani Mohamad Zahid, Assistant Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Bank Negara Malaysia and the Malaysian Bar Joint National AML/CFT Conference 2019, Kuala Lumpur, 29 August 2019. * * * It is a great pleasure and honour to welcome you this morning to the Joint National Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) Conference 2019. I understand that this conference, jointly organised by Bank Negara Malaysia and the Malaysian Bar, forms part of the initiatives under the capacity development programme to elevate the understanding and level of AML/CFT compliance outside of the financial sector, the designated non-financial businesses and professions and other non-bank financial sectors or in brief known as the DNFBP sectors and the legal fraternity, in particular. On this note, I would like to express Bank Negara Malaysia’s appreciation to the Malaysian Bar for their continuous support to Bank Negara Malaysia as the competent authority under the AntiMoney Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), particularly in advancing AML/CFT capacity development initiatives. Apart from today’s conference, the Malaysian Bar has also since mid-2018, incorporated AML/CFT requirements as part of its Continuing Professional Development (CPD) module, in addition to the on-going engagements and discussions to instil compliance culture among the legal fraternity.

As a result, Malaysia was accorded full FATF membership status in 2016, which not only demonstrates a strong commitment to combat money laundering and financing of terrorism, but also reflects a safe business environment in Malaysia. 1/3  BIS central bankers' speeches  Importantly, this recognition enables Malaysia to better participate in the international financial system without qualifications and sanctions, enabling our business and economy to transact and exchange freely with the rest of the world. Such a recognition is priceless for an open and trading economy like ours. Maintaining the integrity of the financial system and safeguarding legitimate business activities is thus paramount in ensuring that this recognition is preserved and that we have a thriving and conducive business environment. Preventing and combating financial crime is a shared responsibility of all stakeholders. Hence, it is imperative that all DNFBP sectors including legal professionals play an important complementary role to financial institutions in safeguarding this by preventing the proceeds from unlawful activities and funding of terrorism from penetrating into our financial system, while facilitating investigations and prosecution of these financial crimes. The legal fraternity also plays a crucial role in the public sphere as an instrumental component in the administration of justice as well as in upholding the rule of law. In many financial transactions or exchanges, the legal fraternity also acts as a gatekeeper, or intermediary arising from their position of trust.