developed immediately and implemented aggressively to establish the necessary systems to improve compliance with the law. overall, while the industry has done a commendable job, a lot more can be accomplished and it is in the industry ’ s interest to show improvements, as we enter into the next round of compliance assessment of individual companies. expectations on mamsb we have high hopes and expectations for the association. the establishment of this association is very timely for it to play a central role for the benefit of the industry. the association should spearhead and drive capacity building efforts that will support the objectives of promoting modernisation and elevating the standards of compliance and professionalism in the industry. firstly, the association is expected to take on an important role in instilling professional conduct and good business practices amongst the industry players. in this respect, the bank looks forward to a code of conduct for the industry to be established and implemented by the industry this year. the code of conduct should comprise a set of key principles and guidance for proper business practices that instil greater market discipline and confidence, and to create a culture of healthy competition within the industry. this should be complemented by a process that ensures that individuals responsible for managing money services business operations have the relevant knowledge and experience to meet the minimum professional standards set by the industry, and are able to offer quality services to the public. in relation to this, the association should consider implementing a certification or qualification process, for example, by conducting entrance examinations for its members sometime in the future. we also expect the association to play a proactive role to improve the image of the industry players and weed out the black sheep within the industry, through the effective implementation and enforcement of the code of conduct, and by working with the relevant authorities to help combat illicit transfers of funds and unauthorised activities. secondly, the association will also serve as the central platform to drive and implement development initiatives to enhance the capacity of the industry. the bank has high bis central bankers ’ speeches expectations for the association to play a key educational role to promote greater industry understanding on regulatory compliance and the latest industry trends, through holistic education and training program such as requirements under the relevant laws and best practices, risk management and consumer protection. properly structured, the training and development program would result in higher professional standards of conduct and should strengthened safeguards against possible abuses and contravention of the law. thirdly, as the collective voice of the industry, the association will provide the bridge for constructive

muhammad bin ibrahim : developments in malaysia ’ s money services business speech by mr muhammad bin ibrahim, deputy governor of the central bank of malaysia, at the launch of the malaysian association of money services business, kuala lumpur, 9 january 2014. * * * over the last two years, this industry has experienced significant change with the introduction of a new and strengthened legislative framework for the industry. we have been encouraged by the positive developments that have been achieved during this period. many of you supported this change and are well on your way to build businesses that will succeed through time with higher standards of professional service and integrity. through our interaction and engagement with members of the industry, we hope that by now, the industry is clear that the status quo cannot be an option. the industry must be able to operate with a high degree of transparency and in full compliance with applicable laws and regulations. this is important not only to build confidence in the services that the industry provides, but also to protect the integrity of the broader financial system. the sanctity of financial system is of utmost importance as it is the pillar for our economy. vision and regulatory expectation for the industry with the enactment of the money services business act 2011, the law provides the powers to create an enabling condition to deliver better consumer protection, improve business opportunities, and strengthen safeguards against the risk of money laundering and other illegal activities. significant resources have been devoted by the bank in the last two years to achieve these objectives. one of it was the relicensing process. we had reassessed a total of 839 money changing companies and remittance service providers and issued new licences to those that met the necessary requirements. we have also provided time for companies to improve their operations. these companies had demonstrated that they are able to comply with the required rules. for those that qualify the licensing processes, improvements in their operations could be achieved within a reasonable timeframe. we have also made it clear to the industry that companies found to be carrying out unauthorised activities will be firmly dealt with through enforcement actions. out of the 839 licenses issued earlier, the relicensing process had reduced a total of 365 licenses as a result of revocation, merger, voluntary surrender of license or industry players themselves decided to convert to become an agent of a larger entity. we have significantly increased our interactions with the industry to help companies understand the regulatory requirements that must be observed. these engagements have also helped the bank better understand the practical issues that are faced by