that may stand between us and progress. we should not be afraid of trying out solutions that we feel will have genuine impact, even if some turn out not to deliver everything they promise. 14. with that in mind, our focus in these two days is to bring banks, regulators, technologists and other important players within our aml / cft eco - system together to challenge our thinking, tackle pain points and discuss how we can move further ahead. working collaboratively with like - minded people, we need to be ambitious because this is just as much about the human element, the impact of global financial crime, as it is about compliance with aml / cft requirements. 15. we want to help enable change in banks because we recognise that, the better banks are able to apply a data driven, technology - enabled approach to aml work, the better we are able to discharge our role and achieve the hkma ’ s statutory objectives. 16. so this is also about the hkma changing as a regulator ; modernising the fight against money laundering requires change and regulatory support, a more flexible approach, and we are committed to further developing the approach that has been started through our various initiatives. 17. so my message is simple. the purpose of engaging every one of you in these two days is to enable and encourage banks, whatever stage you are at in your regtech evolution, to consider, test and responsibly implement technology - enabled innovations in the fight against financial crime, facilitated by, as well as contributing to, an effective aml / cft regime in hong kong. 18. on our part we are going to be using a number of tools, including continued engagement through forums like this, to follow up and see that positive changes are happening in banks and the wider eco - system. the hkma and the banking sector will continue to contribute to aml / cft efforts in hong kong, and through our supervisory processes, regulations and guidance, we support banks ’ efforts to innovate and fully grasp the benefits of regtech. we welcome your feedback. 19. please enjoy today, i know the team have put a lot of thought into making it interesting and thought provoking. 20. let us seize this opportunity to develop a stronger collective vision of what each of us can contribute towards a more effective response to money laundering. 2 / 2 bis central bankers'speeches

. i have often pointed out that governments spend huge amounts of money and efforts building the physical infrastructure to move people and goods around safely and efficiently, but that not even a small fraction of those resources is given to moving money and financial instruments around safely and efficiently. the result, very simply, is inefficient financial intermediation. money is not mobilised to its full potential, and economic progress is undermined. the financial infrastructure that we want, to use a bit of market jargon, is one that enables, as soon as possible after dealing, rtgs dvp, namely, real time gross settlement with delivery versus payment for transactions in financial instruments ( rtgs pvp or payment versus payment for foreign exchange transactions ). this is what we have achieved in hong kong. hong kong ’ s bond market let me turn now to the development of hong kong ’ s bond market and share with you our experience. as i said earlier, after agonising over this for a long period, behind the convenient argument that if there is a need for a market to develop it will develop by itself without the urging of government, we decided to get involved. the exchange fund bills and notes programme was subsequently introduced at the beginning of 1990. but the primary justification deployed then was the need for a money market instrument, targeted at the banks as customers, to facilitate monetary management rather than the development of the bond market. nevertheless, we adopted a comprehensive approach to the task. we put together an innovative market making system that virtually guaranteed liquidity by allowing a handful of market makers to go short in any issue of our paper for as long as their overall holdings, with suitable haircuts, are long. this has now been replaced by an even more robust arrangement whereby short positions in particular issues are squared at the end of the day through overnight repos against other issues. we also built a paperless clearing, settlement and custodian system operated by our central moneymarkets unit ( cmu ), which also provided similar services to the larger volume of private sector debt. and, at the same time as we introduced our real time gross settlement payment system at the end of 1996, we moved on to dvp, or delivery versus payment, with real time and end of day capabilities. meanwhile, the supply of debt has steadily been increasing. corporate bond issuance has increased by 300 per cent in the last decade or so. we also have an increasing variety of products, including mortgage