tightening of monetary policy globally, both the extent and pace, has been unprecedented. without doubt, the ecb's rate increases are being transmitted forcefully to euro area financing and monetary conditions. however, the lags and the strength of transmission to the real economy remain uncertain. slide 2 recent events in the financial markets have heightened uncertainty, which may influence the transmission of monetary policy in the euro area, too. however, the euro area banking sector is resilient. the banks have strong capital and liquidity positions, well above the minimum requirements, and far above the levels prevailing before the global financial crisis. but of course we must remain vigilant to identify risks. my final point is on communication and forward guidance. i draw from research suggesting that central banks should never tire of communicating their objectives and outlining the elements of their monetary policy reaction functions. for the bank of japan, the recent decision to do a broad - perspective review of monetary policy will provide an excellent opportunity for such communication. when it comes to the ecb governing council, our communication guidance reflects the prevailing uncertainty. since march we have been providing information on the critical elements that we monitor in determining our data - dependent approach on policy rate decisions going forward. these elements are, firstly, an assessment of the inflation outlook in the light of incoming economic and financial data ; secondly, the dynamics of underlying inflation ; and thirdly, the strength of our monetary policy transmission. in our monetary policy stance, we have recently reached a point where rates are in restrictive territory. in my view, it is essential that we see a steady and sustained decline in underlying inflation before we start considering easing the policy again. the governing council has already made it clear that we will continue to follow this data - dependent approach to determining the appropriate monetary policy stance. the journey is not over yet. on that note, i shall conclude my remarks. i would just – finally – like to express my thanks for this opportunity to share my views with such distinguished fellow panelists. i look forward to our discussion. 2 / 2 bis - central bankers'speeches

to counter the risks of money laundering and terrorist financing, rather than merely looking at technical compliance. this is indeed very relevant to the theme of this year ’ s conference “ raising the bar in compliance and enforcement ”. as malaysia ’ s aml / cft regime grows in maturity, the benchmark for compliance by financial institutions will be measured more in terms of its effectiveness in deterring and preventing financial crimes before they occur, and in effectively supporting the relevant law enforcement agencies to bring the perpetrators to justice when such crimes happen, despite our best efforts. in this regard, i urge the industry to take advantage of the knowledge and experience of the panel of experts assembled here at this conference, to better understand and prepare for the implications of the review of the fatf 40 + 9 recommendations, and the expectations on financial institutions and boards of directors moving forward. for bank negara malaysia, the enhancement to the nation ’ s infrastructure to combat financial crimes will remain as one of our key priorities. in this regard, our role as malaysia ’ s primary financial regulator will continue to focus three broad areas. the first is to deter and prevent criminals from abusing the financial system to be the conduit for illegal activities by ensuring the continued effectiveness of malaysia ’ s legal and other relevant infrastructure, systems and processes in combating financial crimes. secondly, is to ensure all financial institutions continue to strengthen their defences against such threats and risks via our regulatory policies as well as risk - based supervisory and surveillance activities ; and thirdly, to strengthen collaboration between the financial industry with other domestic and international stakeholders in aml / cft initiatives to protect the integrity and stability of our financial system, including implementing capacity building programmes, such as this conference. while the financial sector has, over the years, strengthened its risk management and control functions to combat financial crimes, a higher degree of emphasis and attention by senior management and the board, on issues relating to aml / cft, can further improve the standards of compliance and the effectiveness of measures put in place to fight against money laundering and terrorist financing. we also observed that financial institutions exhibiting effective defences against financial crimes shared four common attributes in their aml / cft framework. these are : ( i ) well developed and clearly articulated policies and procedures ; ( ii ) effective governance structure, particularly on the compliance function ; ( iii ) incorporation of aml / cft compliance assessments in the audit and capacity development programmes ; and ( iv ) increased and effective use of information technology and management