global risk forum over the past five years. given the acute trauma of the financial crisis and its systemic nature, that is not surprising. i did find it interesting to see how the discussions of systemic risk have shifted over these five years. initially, the discussions were primarily focused on defining systemic risk, including the underlying shocks and propagation channels. during these initial conversations, the concept of macroprudential supervision was introduced as a means of mitigating systemic risk, but the discussion largely centered on defining what macroprudential supervision might entail, and how it differs from more traditional microprudential supervision. more recently, the systemic risk discussions have become increasingly technical and practical in nature — focusing on the details of the resolution regime, monitoring shadow banking and considering implications of shifting activity, and on actual approaches for conducting macroprudential supervision. 1 / 3 bis central bankers'speeches second, governance has been a frequent topic. again, this is understandable given its central importance for private sector risk management and the official sector reform agenda. it is interesting that the assortment of discussion topics under the governance agenda item has been remarkably stable over the years. the agendas examined the appropriate roles of the board of directors and senior managers, the degree to which the official sector should prescribe risk management practices and principles, and the need to tailor such expectations depending on an institution ’ s business models and risk profiles. we should also think beyond the traditional governance topics to determine if other key risk types should be covered within these frameworks. i ’ ll return to this latter point. the third theme is the changing nature of the discussions around regulatory reform. in 2011 and 2012, much of the agenda focused on the “ what ” and the “ how ” of the reform package — what should be included in the reforms and how would these mechanisms work in practice. discussion questions were geared toward concerns about the feasibility of these new policies and regulations, and the need for global coordination and cooperation. in recent years, as you know, the global regulatory community has made significant progress on finalizing the post - crisis reforms and the conversation has naturally shifted to the impact of these regulatory reforms ; for example, a desire for consistency across firms, business models and jurisdictions and an assessment of factors driving changes in market liquidity. in raising these three frequently discussed topics – systemic risk, governance, and regulatory reform — i also wonder what topics have emerged that we are not discussing, but perhaps should be. since the financial crisis, i think

njuguna ndung ’ u : anti - money laundering and combating the financing of terrorism in kenya remarks by prof njuguna ndung ’ u, governor of the central bank of kenya, at the anti - money laundering ( aml ) national stakeholders forum, kenya school of monetary studies, nairobi, 4 october 2012. * * * hon. oburu odinga, assistant minister for finance ; chief executives of commercial banks ; mr. john wanyela, chairman, anti - money laundering advisory board ; eminent ambassadors ; our development partners ; distinguished guests ; ladies and gentlemen : i feel honoured and privileged to be with you at the start of this important interactive forum that brings together financial sector stakeholders to deliberate on the important subject of anti - money laundering and combating of financing of terrorism ( aml / cft ) with an aim of creating awareness on aml issues. today i have a humble undertaking, namely of inviting our chief guest ; the hon. assistant minister for finance to deliver the keynote address and officially open the forum. but before i invite him to the podium, i wish to make a few remarks to bring delegates to speed on the status of kenya on aml / cft issues. ladies and gentlemen ; let me begin by extending a very warm welcome to all our participants to the kenya school of monetary studies. the school is working together with the financial reporting centre ( frc ) with the support of the danish government to create an extensive aml / cft programme for the next two years to raise awareness as well as train reporting entities, law enforcement authorities and personnel in the frc on anti - money laundering initiatives. as such, today ’ s forum marks the start of the danish funded project which will run over the next 24 months. the project includes activities whose objectives are to raise awareness amongst key stakeholders engaged in the fight against money laundering and terrorism financing. as you are all well aware, kenya has made significant strides in protecting the integrity of its financial sector from illicit financial crimes. the government has not only shown a high level of political commitment in overseeing the stability of the country ’ s financial sector but has also been actively engaged in overseeing the implementation of requisite laws and measures to ensure that our financial systems are adequately protected against the financial crimes of money laundering and the financing of terrorism ( aml / cft ). at the beirut review meeting last month, we argued that kenya is caught up in a triple problem of implementing a new constitution and formulating accompanying