of an effective aml / cft regime, that is to ensure that the financial system and the broader economy are protected from threats of money laundering and the financing of terrorism, thereby strengthening financial sector integrity that contributes to the safety and security of the country. before i end my speech, let me recap the following key points : i. crimes and money laundering could pose significant threat to our financial system, economy and society ; ii. understanding of risks is key in ensuring that our aml / cft measures are commensurate with the risks, in order for us to protect the financial institutions and the integrity of our financial system ; iii. non - compliances will be viewed very seriously and strong regulatory and supervisory actions are to be expected ; iv. cooperation and collaboration between financial institutions and leas are vital for an effective aml / cft regime ; and v. legal, regulatory and operational frameworks alone are not sufficient without effective execution and overall implementation. results would need to be measured based on the outcome and impact. bis central bankers ’ speeches in relations to the mutual evaluation that will be undertaken from 13 to 25 november this year, i wish inform that some financial institutions will be called to meet the assessors during the on - site assessment in november. the purpose of the meeting is for the assessors to assess how effective aml / cft measures are being implemented by the reporting institutions. we have identified several potential institutions as per the criteria given by the assessors. if your institution is being selected, you will receive formal notification from us in due course. nevertheless, there are also high possibilities that the assessors may request to meet institutions of their choice during the on - site assessment. on the final note, i would like to once again thank all of you here today for attending this conference and for the moderators and panellists who are willing to share their experiences for the collective benefits of everyone attending the conference today. i would also like to thank the association of banks, malaysia ( abm ), association of islamic banking institutions malaysia ( aibim ), life insurance association of malaysia ( liam ), malaysian investment banking association ( miba ), malaysian takaful association ( mta ) and the securities commission malaysia for coordinating the participation from your members. i wish all of you a successful and productive conference ahead. bis central bankers ’ speeches

service providers. the policy document on the management of customer information and permitted disclosures ( mcipd ) likewise addresses risks to data privacy to consumers. 3 / 5 bis - central bankers'speeches while our current regulatory framework may not necessarily single out ai as a technology, it applies to the use of ai systems and is designed to address risks in a technology - agnostic way. how, then, do we identify and prepare for risks that are still unknown or emerging? globally, financial institutions, regulators and international standard - setting bodies are generally converging on guiding principles for the responsible use of ai. these include fairness, inclusivity, transparency, robustness, and accountability. for financial institutions, responsible ai can be fostered through strong internal governance and risk management practices. at our end, bnm is committed to ensuring that our regulatory framework continues to remain proportionate to risks as we unlock the upsides of innovation. this means creating a conducive environment where responsible innovation and healthy competition are nurtured, novel business models and new entrants are given an opportunity to flourish, and associated risks are managed effectively – especially those that may threaten system - wide stability, consumer outcomes, and confidence in the financial sector. towards this end, the bnm regulatory sandbox can play a key role in facilitating the testing of innovative ai use cases where there are any existing regulatory impediments. in such cases, the sandbox may enable financial institutions to assess the feasibility of new ai - enabled use cases while providing bnm with insights into both opportunities and risks associated with these innovations. so far, the sandbox has played a role in facilitating the testing of innovative use cases and business models, including digital remittance, e - kyc, buy - now - pay - later and digital insurance. finally, it is worth highlighting that the financial industry also plays a role in responsible co - innovation to effectively overcome challenges faced and realise the potential of ai in finance. firstly, the industry can work together to share knowledge, best practices, and ai tools to lower costs, foster the development of common standards, and elevate standards of risk management in this emerging area. one example is the industryled development of ai guidelines and risk management best practices by the chief risk officers'forum. we hope to see further similar efforts across the industry, in addressing areas such as responsible ai use and the development of tools or standards for addressing fairness concerns. secondly, it is key that consumers