. thus, as institutions designed with developmental mandates in mind, dfis are primed to serve the greater good. for malaysia, the developmental story is not over as we seek to transform our economy into a high income nation while ensuring no one is left behind. the task ahead of us is challenging, but it is not insurmountable. as such, the stakes are higher than ever. in this environment, it is important for dfis to ensure that they remain relevant. the urgency for change remains high, as shifts in the global economic and social landscape continue to create risks and unforeseen externalities that may dampen growth. thus, the focus on building resilience, creating building blocks to address financial instability, boosting national competitiveness, strengthening human capital, inculcating sustainable consumption and increasing productivity, will be paramount in shaping our success ahead. with all these in mind, i will put forward three points in my remarks today, relating to the business models, performance and regulatory framework for dfis. 1 / 5 bis central bankers'speeches key message 1 – re - engineer business models of dfis first and foremost, for dfis to contribute effectively to the development priorities of the nation, it is important for each dfi to ensure their long term financial sustainability. without this foundation of continued financial health and strength, dfis will not be able to contribute meaningfully as there will be constraints and limitations in executing their objectives. as policymakers, bank negara malaysia envisions an environment where dfis are financially independent from the government with enduring business models that can continue to deliver positive benefits to the economy and broader society. over the long - term, dfis should not be dependent on fiscal support to deliver their mandates and hence, will need to diversify their sources of funding to be sustainable in the long run. what we should seek is not short - term fixes but enduring business models that will deliver positive impacts to the economy and society as the economic landscape changes. at the same time, business models for dfis should be firmly grounded on strong governance and a culture of professional management. good governance underpins any successful business model and it is of utmost importance that dfis follow best practices that promote integrity, transparency and accountability. to achieve this, dfis should strive to strengthen behaviour and risk culture within the organisation. strong governance entails crafting well - defined mandates that will insulate the organisation from und

financial industry will be hard pressed to mitigate, identify and prevent cases of abuse in the system. there is no doubt that rapid technological developments have offered immense potential for economic growth. unfortunately, they have also spawned new ways for terrorist organisations to acquire, move and manage their funds. there are other risks not anticipated before, such as remote radicalisation via the internet that has resulted in an increase in the number of small terrorist cells and “ lone wolf actors ” that makes detecting and halting terrorism financing even more challenging. in light of this development, the role of financial sector as a bulwark against terrorists financing becomes even more critical. the financial system must always be in a state of readiness to identify and effectively prevent any emerging risk of terrorism financing. 1 / 3 bis central bankers'speeches let me suggest a three - pronged strategy to erect stronger defences within the financial system. this will include capitalising on technology, promoting clever partnership between the authorities and industry, and closer international cooperation. capitalising on technology while technological misuse poses a danger to society ’ s wellbeing, technology is also an effective tool to counter terrorism financing. akin to using a diamond to cut a diamond, we must harness the vast potential in technological innovations to reinvent and reinforce our lines of defence. a rule - based system, which is at the core of many of such preventive programmes today is becoming increasingly ineffective. the reliance on automated systems to monitor and detect suspicious transactions have served us well, but as we move forward, we need to do more. we need new tools. the adoption of artificial intelligence, machine learning, and big data technology are tools that would likely be imperative, as suspicious transactions become more complex and harder to detect. as we learned from the innovation forum at this summit, the use of artificial intelligence and big data will have the potential to increase efficiency and accuracy of assessments that is essential in a dynamic environment. the banking sector needs to adopt the latest and most advanced technologies to improve its risk management framework. we need to prepare ourselves, as according to many pundits, digital currencies will become the new norm. the advent of digital currencies as some have forecasted, will mark the beginning of a new era in the financial sector. as authorities, we cannot be oblivious to these developments. as such, bank negara malaysia has initiated the foundational work for the development of a regulatory structure for digital currencies. beginning 2018, bank negara malaysia will designate persons