converting crypto currencies into fiat money currencies as reporting institutions under the anti - money laundering, anti - terrorism financing and proceeds of unlawful activities act 2001. this is to prevent the abuse of the system for criminal and unlawful activities and ensuring the stability and integrity of the financial system. strategic partnership dynamic collaboration between the public and private sector is imperative to create an environment conducive for the creation of innovative solutions. one of the main findings from the global fintech report published by pwc recently is that legislation is not keeping pace with innovation, creating significant uncertainty. this tells us that a more adaptable structure in policymaking, that minimises bureaucratic hurdles or “ red tape ”, could be advantageous under the current dynamic environment to encourage potentially important innovations. for that reason, bank negara malaysia launched its very own fintech regulatory sandbox in 2016 to allow experimentation of fintech solutions in a ‘ live ’ environment. a number of innovative financial solutions have been allowed to operate under this sandbox initiative, including an e - kyc solution that could revolutionise the aml / cft framework in the financial sector in malaysia. this initiative allows for the viability of new technologies to be tested in a controlled environment while simultaneously exploring potential risks and the mitigating measures. in addition, bank negara malaysia will continue to foster cooperative platforms between the authorities and financial institutions to enable “ rapid responses ” to terrorism financing threats. early this year, we facilitated an information sharing platform between law enforcement agencies and selected financial institutions to swiftly and effectively mitigate risks and respond to threats. greater access of intelligence information for financial institutions and the increased threats from isil had resulted in the upward trend of reporting of suspicious transaction reports ( strs ). to 2 / 3 bis central bankers'speeches put it in perspective, in 2015, the financial intelligent unit ( fiu ) received 93 terrorism financing related strs which led to 14 disclosures to law enforcement agencies. in comparison, between january and june 2017, we received 346 terrorism financing related strs which have led to 34 disclosures to law enforcement agencies. importantly, the quality of strs submitted has also improved. bank negara malaysia is also in the midst of finalising the details of a new requirement for the banking and money services business sector to report remittances in high risk areas. the high risk areas will be determined based on the law enforcement agency ’ s intelligence on areas that they view may pose higher risks for

focused on the interests of clients. well informed financial consumers the bank is mindful that while great emphasis has been placed on the responsibility of financial service providers and intermediaries to ensure that the products recommended to consumers are appropriate to their needs, consumers are ultimately accountable for their own financial decisions. our best efforts to improve the quality of and accessibility to financial advice would be incomplete without at the same time, equipping consumers with the knowledge, skills and tools to make informed financial decisions. these capabilities not only allow individuals to build, manage and preserve wealth, they are essential to help consumers protect themselves against poor market practices and to take appropriate actions when treated unfairly. therefore, enhancing financial capability among malaysians has been and will continue to be an important agenda of the bank. financial advisers have an important role in this effort given your unique vantage point as an objective adviser, and through the close relationships that are cultivated with your clients. we look to the industry to provide input and support to the bank ’ s ongoing work to develop financial capability programmes that are tailored to the different key life stages of individuals from their days as a student, when they enter the workforce, when they start and raise a family, and in retirement. conclusion in closing, let me congratulate the afa on its second annual conference and the progress that has been made in bringing the industry together under an organized platform to further advance and develop the industry. i come back to my opening comments and look forward to working with the association to deliver the objectives that were originally set out for the industry, that is to improve the quality of advice and enhance its role in supporting the broader financial management strategies of malaysian households and individuals to grow their savings, manage risk and meet their financial goals. thank you. bis central bankers ’ speeches