speeches to achieve this in a way that contains the external risks that can come with innovation, while allowing the opportunity for great new ideas to unfold and take root. as regulators, we are also continuously learning ourselves about the best way to deal sensibly and proportionately with risks associated with innovation. in this regard, i am pleased to announce that the bank will shortly be issuing proposed regulatory parameters for the conduct of electronic know - your - customer or e - kyc processes for remittance transactions. we expect to finalise the standards for e - kyc by october after receiving industry comments. following this, the existing requirement for face - to - face verifications for onboarding new customers will be removed for companies that have received approval to conduct e - kyc. it goes without saying that the bank fully expects msb companies licensed in malaysia to ensure that innovation is not pursued at the expense of obligations to comply with applicable laws and regulations, and to safeguard legitimate interests of customers. having worked hard to build confidence and trust in the industry and to avert the damaging effects of de - risking that continues to a key challenge in more than a few jurisdictions, actions by any firm to undermine the integrity of the financial system will be met with a strong regulatory response from the bank. that said, the bank has been greatly encouraged by the progress of on - going efforts in the industry to ensure that all companies are fully competent through mandatory aml / cft training programmes conducted by the association. steps being taken to require all compliance officers in the industry to be accredited or certified by recognised professional accreditation and certification bodies will mark another important milestone for the industry. conclusion innovation is ultimately a collaborative process whether it is between individuals within an organization coming together to develop new ideas to give the firm a competitive advantage ; or between companies to share common utilities between policymakers to create conditions that encourage innovation or between industry, governments and multilateral institutions to deepen knowledge and advance policies that increase the impact of innovation on growth and development. the best ideas, and more importantly the ability to put them into practice, will come from our ability to overcome natural instincts to erect protective barriers, and to open up individual companies, institutions and economies to new possibilities that can make us more successful, more competitive and more inclusive over the longer term. this conference is a valuable opportunity for the industry to exchange ideas and reflect on how innovation – not just technological but all facets of innovation – can create a game - changing impact in the industry

an unfinished agenda. in many countries, both developing and developed, informal remittances systems remain prevalent. there are legitimate reasons why such systems exist in some countries, for example countries that do not have fully developed formal financial systems. at the same time, legitimate concerns exist over risks associated with such systems, especially in an environment where money laundering and terrorist financing concerns have heightened. opportunities to increase the development impact of remittances have also focused attention on remittances that are now flowing through informal channels. in balancing these considerations, efforts are being made to bring these informal systems closer to formal financial systems – especially by increasing transparency – but without altering their inherent advantages. we don ’ t always get the balance right. de - risking by banks has been a clear case of market failure in which left to their own devices, different parties acted in their own legitimate interests – 1 / 4 bis central bankers'speeches but with adverse social and economic consequences, including for communities and countries that depend on remittance to raise resources for development. we are seeing positive moves to redress this. in particular, it is critical that continued priority be given to providing clear guidance on risk - based approaches for implementing aml / cft measures, improving the quality of supervision of remittance providers, and achieving more consistency in supervision across borders. confronting the changing nature of competition the nature of competition has also changed profoundly. competition used to be more predictable. you knew who your closest competitors were. and you probably also understood enough about their comparative advantages and constraints to be able to compete effectively. this is no longer the case. competition has become much more unpredictable, and can come from unlikely sources with the advent of peer - to - peer currency exchange platforms, e - commerce and blockchain solutions created by fintech companies. it is also not just about who your competitors are, or even what they offer. whyconsumers prefer your competitors has also become an important factor. it matters to more consumers today whether companies are conducting business with integrity and ethically. ultimately, consumers will almost always prefer to deal with companies that they trust. however, what customers look for to identify with companies that they can trust is changing. advertising campaigns of some of the largest companies that are households names today, centre on universal values of charity towards our fellow mankind, honesty, and respect for one another. these are some of the clearest signs of businesses that understand the shifting preference of a fast growing, new generation of