the world's first issue of its kind, incorporating full convertibility features. the derivatives market has also been developed with the introduction of islamic currency swap and islamic profit rate swap. an important enabling factor for innovations is the availability of a pool of experienced talent and resources. in the parallel financial system existing in malaysia, the talent and expertise for sukuk and islamic financial activities does not derive solely from the 9, 000 staff of islamic financial institutions. it is also well supported by the workforce of domestic and foreign conventional financial institutions. leveraging of expertise is critical in pioneering innovative products so as to ensure that the product design and structure, as well as the risk management aspects, are thoroughly addressed. moving forward, several initiatives were already in place to further support the international dimension of the malaysian sukuk market, such as tax incentives and customized forex rules. for example, malaysia has further liberalized our foreign exchange administrative rules to allow multilateral financial institutions, multinational and national corporations to issue both ringgit and non - ringgit denominated instruments in our capital market. a number of legal and regulatory requirements have been further customized to drive down the cost of sukuk issuance. these measures are key mifc measures and incentives and these include : ( i ) profits and dividends received by non - resident investors from holding of rm and non rm islamic instruments issued in malaysia are exempted from withholding tax ; ( ii ) a special purpose vehicle ( spv ) for islamic financing purposes via the islamic capital market is not required to comply with the administrative procedures under the income tax act 1967 ; ( iii ) a company that establishes a spv is given a tax deduction on the issuance cost of the islamic securities incurred by the spv ; ( iv ) tax deduction on issuance cost for all islamic securities approved by the securities commission ; and ( v ) stamp duty exemption for 10 years on instruments relating to islamic securities under the mifc. third area is outsourcing, insourcing and white labeling activities. malaysia's more than two decades of experience in takaful operation and product design can be systematically structured as a complete solution to be offered to new takaful operators. takaful operators in other jurisdictions may leverage on the services and experience of the malaysian islamic finance and takaful industry by outsourcing certain operational functions, such as product design and investment activities, thereby allowing them to focus their currently limited resources to important tasks of expanding the business. strategic

like to make is that combating financial crime is a shared responsibility. it is not the sole responsibility of central bank supervisors, financial intelligent units, banks or even the compliance function within financial institutions. just as individuals, all of us have a collective responsibility to contribute to nation building, it is the responsibility of each player in the financial system, law enforcement agencies, prosecution agencies and the judiciary to look out for potential abuses, stamp out financial crimes and not let the perpetrators get away. for financial crimes do not occur in isolation. they are a conduit for other forms of serious crimes. almost all forms of serious crimes, such as human trafficking, drug trade and organised syndicates fund their activities through some form of financial crime. as such, financial crimes are inherently complex, and often will involve multiple enforcement agencies, sometimes even across borders. this reinforces the call for greater shared responsibility to shine a light on these 1 / 5 bis central bankers'speeches dark areas of the financial system. one of the key ways to exercise this responsibility is through the sharing of information. more effectively, this means putting in place an effective and mutually reinforcing ecosystem or platform where the relevant parties are able to partner together to report and investigate financial crime. in malaysia, this is a burgeoning area that we are looking to deepen. we are encouraged by the early results that explores adapting the public - private partnership model of other countries such as the united kingdom and australia. so far, partnerships between the royal malaysian police, selected financial institutions and money services businesses have resulted in 9 successful cases being prosecuted in the area of terrorism and terrorism financing. the idea behind these partnerships is to make intelligence sharing more meaningful and create an ecosystem where various pieces of the ‘ jigsaw puzzle ’ can be put together. different parties will have different access to information and different comparative advantages. fusing and complementing them will add to the number of cases that can be detected and prosecuted. this will also act as a deterrent as it signals the commitment and extent to which the relevant authorities and the industry will go to stamp out crime. hence, we are looking forward to expand this partnership for different types of crimes. organisations such as the compliance officers networking group of malaysia ( cong ) and the industry associations can also play a role in enhancing the professionalism and capacity building of compliance officers in malaysia. the development of human capital is essential in our efforts to combat financial crime. it is our biggest asset, more than any technology.