to consumers. global money services companies exist alongside niche and smaller companies that focus on serving local communities. this has fostered competition and helped to fill market gaps. today, money services are provided through a network of branches and agents of money services entities, retail outlets, post offices, banks and mobile channels. operational standards are also diverse across entities. operational systems and controls, including mechanism to protect consumers ’ interest and prevent criminal activity, can vary considerably between entities and jurisdictions. with typically hundreds or more money services entities in most countries, such diversity presents a unique set of challenges for money services businesses and regulators seeking to put in place the necessary frameworks to manage and mitigate risks associated with the business. in the more recent period, money services businesses have been confronted with increased challenges from heightened global concerns with crimes committed cross - border and bis central bankers ’ speeches transnational money laundering. the cash - based nature of msb transactions, global reach of remittance networks, and customer verification processes, if not properly managed would render msbs susceptible to money laundering threats. heightened regulatory scrutiny over money laundering controls and heavy penalties meted out by regulators might prompt banks to review their relationships with msb companies. some banks have withdrawn banking facilities provided to msb companies, creating significant difficulties for large numbers of msb companies that are doing legitimate business. on the other hand, as the bar is raised for msbs to strengthen aml procedures, there is a concern over the unintended consequences that this might exclude certain segments of society from access to the formal financial system. worse, it pushes more transactions to the informal or illegal channels. i raise these observations to highlight two points which i thought are relevant to this conference. first, msb has an important role in supporting an inclusive financial system and facilitating economic transactions that add to growth and prosperity. however, this role has not been fully exploited. for example, there are still significant number of businesses and migrant workers who still prefer informal remittance channels as their choice. it is timely for msb providers to reassess their products and services in terms of cost, speed, convenience and trusts so that we can draw this group of users away from the informal channels. i believe innovation is key to achieve this and it has to be facilitated by a regulatory framework that is facilitative. second, global and national efforts to address risks associated with the financial proceeds from criminal activity have turned the spotlight on the msb industry. the industry ’ s long

and history have shown us that, these preconditions made business sense and over the long run ensure the sustainability of the industry. the theme of this conference, “ scaling up excellence – creating opportunities while mitigating risks ” appropriately sums up the challenges we face today in the msb industry. rapid change is the new normal in today ’ s dynamic world. the global interconnectivity, the impact of regulatory changes and new technologies are all combining to transform the landscape of the msb industry, not just within the region, but also internationally. success for money services businesses in today ’ s challenging environment will hinge on the ability to adapt to new demands, while making the most of new growth opportunities that come with change. i take recognisance that among the countries represented here today, we all face somewhat different challenges and we are likely at different stages of action. i know with certainty, however that we all agree inaction is not an option as the world changes around us. i hope bis central bankers ’ speeches that this conference will encourage us to move forward with greater confidence and determination, equipped with deeper knowledge and a better appreciation of the priorities that we need to manage and the paths that we can take to achieve our shared objectives for the industry. on that note, it gives me great pleasure to open the “ regional conference on money services business ”. i wish you productive discussions over the next 2 and the half days. to our overseas guests, let me welcome you once again to kuala lumpur and i hope you will bring home pleasant memories of your brief stay here. bis central bankers ’ speeches