Apart from standing guided by specific instruction and detailed direction from regulators, compliance officers are encouraged to introduced new or proactive measures, within the ambit of the law. Similarly, the requirement now emphasises on measures that commensurate with risk. The application of the risk-based approach (RBA) should have a meaningful application in action. Misinformed RBA could lead to unjust financial exclusion, economic cost to institutions, or 3/4  BIS central bankers' speeches  sanctions by the authority. The efforts by private sector are vital as they form a part of the country’s assessment towards compliance to international AML/CFT standards. They are assessed under Immediate Outcome 4 on whether RIs adequately apply AML/CFT preventive measures commensurate with their risks, and report suspicious transactions. I wish to highlight that, based on Mutual Evaluation Exercise conducted on 38 countries so far, majority of the private sector within these countries, including developed countries are still unable to demonstrate the characteristics of an effective system; namely understanding risks, comprehensive internal control and compliance programme including application of customer due diligence on suspicious transactions reporting. I would like to echo the discussion during the Plenary session yesterday that an effective antifinancial crime programme requires concerted efforts from every line in the institutions, be it the first, second or third line of defence. It also demands collaborative efforts by other functions within the institutions, including an updated IT system and infrastructure, comprehensive and continuous staff training programmes, and good understanding of risks.

Most importantly, the oversight and support from senior management and Board of Directors of the institutions. Before I conclude my speech, allow me to share with you some developments from the regulatory perspective that you can expect in the near future. As you may be well aware, our national ML/TF risk assessment (NRA) is currently in progress and is expected to be concluded by year end. The results of the assessment will be accompanied with some guidance from regulators. This should be used as a basis in your institutional risk assessment to eventually align your operations on a risk-based approach. You can also expect introductions and amendments to AML/CFT policies, in response to the NRA as well as to new areas relating to cryptocurrencies and e-KYC. From the enforcement perspective, another notable change to expect in the next year is the publicising of financial penalties imposed on financial institutions and information on misconduct resulting in penalties. With the increase in the number of investigations by law enforcement authorities, you should expect more significant demand for information and collaboration from your institutions. Needless to say, timely and accurate responses are highly required and of paramount importance. A sound public-private partnership is essential to achieve the ultimate objective of an effective AML/CFT regime. On that final note, I would like to once again thank CONG, AIF and all of you here for attending this conference. I wish you all the best and let us all contribute hand-in-hand towards building a safer and more secure environment. Thank you.