' speeches elevating our understanding and subsequent implementation of your aml / cft reporting obligations, or preventive measures, there should also be efforts to : 1. keep ourselves abreast with recent and emerging trends of ml / tf ; 2. abide by all ethical obligations and applicable professional rules ; and also 3. properly distinguish between legitimate client requests and transactions or structures that may be intended for criminal activities or to frustrate law enforcement. today ’ s conference seeks to address the concerns raised by legal professionals that are often cited as a hurdle or stumbling block to effectively implement aml / cft obligations. themed, “ building aml / cft compliance effectiveness : risks and challenges ”, the conference will have : 1. discussions on the application of risk - based approach ; 2. a discussion on aml / cft compliance vis - a - vis the legal professional privilege and professional secrecy ; 3. sharing of experience or best practices by industry players ; and 4. finally, sharing by law enforcement agencies on ml and tf cases involving abuse of lawyers and other gatekeepers, to facilitate ml and tf related crimes or activities. before i end, i wish to highlight two key updates : 1. first, bank negara malaysia is in the midst of finalizing revision to sector 5 policy document ( or the aml / cft guidelines issued pursuant to the amla ) and will be issuing the exposure draft in september. all reporting institutions are invited to provide comments and views on the draft which may be organized through relevant licencing authorities, self - regulatory bodies, industry associations or directly to bank negara malaysia ; and 2. second, i would also like to take this opportunity to remind all reporting institutions, that bank negara malaysia is increasing its supervisory and enforcement of aml / cft compliance, in which we intend to pursue more deterrent action including taking appropriate enforcement actions under the amla, for any identified non - compliances, beginning 2020. as such we urge all reporting institutions present today to engage and discourse any compliance issues with the wide ranging of experts that we have lined up for this conference. with that, i wish everyone a fruitful discussion ahead and selamat menyambut hari kemerdekaan. 3 / 3 bis central bankers'speeches

make to sustained growth in output and employment. since 1991, the bank and the government of canada have agreed to pursue low inflation within a framework based on an explicit inflation target. the current agreement, which runs to the end of 2006, aims at continuing to keep inflation at the 2 per cent target midpoint of a 1 to 3 per cent range over the medium term. there are two elements i would like to underscore here - the emphasis we place on the 2 per cent midpoint as our target and the emphasis on the medium term. the significance of the first will become apparent in a moment. as for the focus on the medium term, it has to do with the fact that monetary policy actions take anywhere between one and two years to have their full effects on output and inflation. so, when setting monetary policy, we have to consider what will be the effect of actions we take today on the economy and on inflation several months down the road. in practice, setting monetary policy means raising or lowering interest rates to maintain a balance between the demand for goods and services and the economy's capacity to supply those goods and services. as long as there is a balance between demand and supply, inflation will remain stable. when we look at it this way, the rate of inflation is more than a number that tells us how the purchasing power of the average consumer is holding up. it is also a measure that the central bank can use to gauge how close to capacity the economy actually is. the presence or absence of inflationary pressures can tell us a lot about the balance between demand and supply. our objective is to help the economy achieve potential output - that is to say, the maximum level of output and employment that can be sustained over the medium term without putting upward pressure on inflation. over the past decade, a monetary policy based on an inflation target has helped us realize important economic benefits, particularly solid gains in output, employment, and incomes. it has also helped us to avoid the boom and bust cycles of the past, even in the presence of important surprises. this is because the forward - looking framework of inflation targeting works like an automatic stabilizer for the economy, with interest rates being raised or lowered in response to expected movements in future inflation relative to our 2 per cent target midpoint. for the most part, such movements reflect changes in the pressure of demand on potential output. thus, our focus on the 2 per cent target midpoint allows us to operate monetary policy symmetrically in response to