green and greening products and solutions, as well as an increasing amount of financing committed by industry players. today, the'wall of commitment'showcases the industry's financial commitment of more than rm200 billion for environment, social and governance ( esg ) purposes. while the amount is commendable, more is needed to fund the transition, not only from banks, but also capital market players. it is equally crucial for financial institutions to follow through on the integrity of these pledges by aligning commitments with actions and investments that are consistent with a just and orderly transition. the bank remains focused on ensuring that the financial sector's response to the climate challenge is compatible with both financial stability and inclusion outcomes - to forge a credible path forward for the country. we are mindful that this requires maintaining a delicate balance between development and risk management. by 2026, we expect to see at least half of new financing by banks to be aligned with climate supporting or transitioning activities, as set in the financial sector blueprint. the bank will continue to provide a facilitative policy environment for the industry to advance financial innovations and explore novel financial structures needed to meet the significant financing needs for climate risk mitigation and adaptation. this will need to include a more prominent role for public - private partnerships and innovative blended finance structures. the bank has begun undertaking a comprehensive review of our regulations to ensure climate risk is appropriately accounted for and well - integrated into our regulatory framework. this is to ensure that the industry remains climate resilient, while being able to effectively support the economy's transition. we recognise the challenges that financial institutions may face in balancing these outcomes. concentration risks could for example, increase from green and transition funding, and financial institutions need to properly understand and manage such risks. for the bank, any adjustments to prudential standards would need to carefully consider necessary safeguards to ensure the attendant risks continue to be adequately managed. as financial institutions take more concrete steps in climate action, managing the tradeoffs inherent in crafting credible transition plans and allocating capital that aligns with a 3 / 5 bis - central bankers'speeches net - zero trajectory will be all - important. in support of this, the bank is working to develop guidance on transition plans to promote alignment between financial institutions'business and risk strategies, their public commitments on climate goals and national plans, while safeguarding against the risk of greenwashing. financial institutions must also consider the specific needs of their clients in their

they bear. as the financial industry evolves into digital, it is inevitable that the industry becomes vulnerable to various new threats and risk factors, especially in the domain of financial crimes and terrorism financing. in the effort to mitigate these risks, it is important that we embrace technology and use it to our advantage in order to strengthen our defences against financial crimes and terrorism financing. there are many areas in which the industry could benefit from the latest in technology. 1. firstly, the enhancement of transaction monitoring and reporting system through the use of advanced big data mining and analysis method. the advancement in artificial intelligence and machine learning enables us to collect and analyse data in a way that was not possible before. this allows us to gain new and important insights that will contribute significantly to the prevention of financial crimes. furthermore, the ability to tap into vast amount of information also helps promote better client management which would encourage wider 1 / 4 bis central bankers'speeches financial inclusion and tailored customer service ; 2. secondly, the use of technology to complement and support the compliance function especially in the area of higher risk. a good example of this is demonstrated through the use of digital verification to overcome challenges surrounding non - face - to - face verification and transaction. online identification recognition and biometric verification such as facial, voice and fingerprints recognition offer a new layer of security and potential increase in efficiency for the financial sector. such advanced systems have the potential to strengthen the existing framework and process to minimise fraud and error. it is all too common to view technology as a disruption and a threat to the way we are used to doing things. nevertheless, when technological change is managed appropriately and its related risks are mitigated, we can turn it into an enabler of progress for the financial industry. there is always a group of people who are relentless in their criminal pursuit of economic profit at the expense of others. it is only through our collective efforts that we can manage this negative externality of technological advancement. challenges posed by cryptocurrency for aml as all of you are aware, the next frontier in the financial industry is the advancement in blockchain technology that allows the existence of cryptocurrency. with the global market capitalisation now standing at approximately us $ 160 billion1, cryptocurrencies could become a major part of the financial system that offers new and exciting opportunities as well as challenges for the industry and regulators. however, cryptocurrency is vulnerable to criminal abuse due to the