We should envisage that terrorist financiers will attempt to benefit from anonymous transactions made possible by innovations of new payment products and services such as internet-based payment systems, prepaid cards and virtual currencies. Likewise, fundraising through social media and other online platforms such as “crowdfunding” have increased in prominence, in addition to other more traditional sources of funds such as proceeds of criminal activities, conventional donations, and funding from legitimate purposes. As change is a constant, collation of data points that this environment will continue to persist. Global internet users have increased from 397 million in the year 2000 to nearly 3.9 billion as of June 2017, an impressive growth of almost 1000%. Similarly, global investment activities in the FinTech industry have increased from USD9 billion in 2010 to USD25 billion in 2016. If this trend is anything to go by, the financial industry will be hard pressed to mitigate, identify and prevent cases of abuse in the system. There is no doubt that rapid technological developments have offered immense potential for economic growth. Unfortunately, they have also spawned new ways for terrorist organisations to acquire, move and manage their funds. There are other risks not anticipated before, such as remote radicalisation via the internet that has resulted in an increase in the number of small terrorist cells and “lone wolf actors” that makes detecting and halting terrorism financing even more challenging. In light of this development, the role of financial sector as a bulwark against terrorists financing becomes even more critical.

The IMF has highlighted that global banks and financial institutions have yet to recognize more than half of their total estimated write-downs of $ trillion. So far, growth has been supported by the massive monetary and fiscal stimulus. Indeed, studies of past crises suggest that economic recoveries in the aftermath of financial crises tended to be protracted. Many analysts therefore expect global growth to be slower in the coming years. 5. Against this backdrop, what should be the growth strategies of emerging economies, and what is the role of financial institutions, especially Islamic financial institutions? 6. Even with slower global growth, emerging Asian and Middle Eastern economies are expected to grow at higher rates than advanced economies. There are many positives working in their favour – abundant natural resources and monetary reserves; young and dynamic populations, growing consumer demand, large infrastructural programmes underway in some areas like water, energy, transport, education and healthcare. Generally, balance sheets of corporates and households are in better shape than it was in earlier years. 7. With the growing importance of emerging economies, we will see changes in the patterns of trade and development. There will be stronger “south-south” trade. The old pattern of “flying geese” development in Asian newly-industrialised economies, where developed economies bring in investment and technologies, will give way to a more variegated pattern, where companies in the emerging markets will invest in other markets. We already see many corporates from emerging markets developing disruptive technologies and business models that address market needs in very competitive ways.