m going to give several examples in this regard. first, preserving shareholders ’ rights is one of the core elements of corporate governance. nevertheless, violating the rights of the shareholders is not a rare phenomenon in china, and there is explicit solution to this problem. for instance, in the debt - equity - swaps, no effective measures are in place to safeguard the rights and interests of the shareholders, and in many cases, the assets they were holding turned out to be neither a loan nor an equity. second, the oecd principles of corporate governance emphasizes the role of stakeholders. so far, there has not been an accurate and widely accepted translation in chinese for the word “ stakeholder ”, nor do we have principles or guidelines concerning the role of stakeholders in corporate governance. third, the respective roles of the party organizations and of the board of directors and the management need to be clarified. this is an issue unique in china. in most cases, the party organizations play a positive role in supporting the operation of the board of directors and the management. however, there are some occasions where the party organizations and the board of directors or management hold different opinions on certain issues, calling for principles and guidelines to resolve such issues. fourth, the relationship between corporate governance and the authority ’ s regulation and supervision need to be properly handled. in the planned economy and during the early transition period, government acted as both the owner and the supervisory authority of the enterprises. despite the fact that enterprise management and government supervision have been basically separated, there are often cases where these two become mixed together. clear principles and guidelines are needed in this area. improving corporate governance is a reform on which the public has placed great hopes. we must not let the public disappointed because of unclear principles and guidelines in pursuing the reform. the government should play an important role in setting up clear principles and guidelines on corporate governance by drawing upon the international and historical experiences as well as taking into account china ’ s current specific situation. third, the operations and policies of asset management companies need to be improved. during the several years of development since they were established in 1999, some problems have emerged, which are reflected in the prices at which the non - performing assets are disposed, the abuse of power for personal gains, and the undue transfer of benefits. several issues are yet to be clarified. first, if and only if the objective of the reforms is to make the financial institutions stronger so that they can provide better financial services does it make sense to

stability facilitates their integration into the global financial system. they will also contribute to more transparent governance and effective fiscal administration. at the international level, there is renewed interest to review policies relating to banking secrecy and transparency, which are two of the factors identified to have contributed to the current financial meltdown. in this regard, the financial action task force ( fatf ) has initiated a study to assess the effectiveness of its policy tools in response to the current financial and economic crisis. the fatf is now identifying policy tools which may need further strengthening and evaluating whether new policy tools or responses may be needed to meet any new challenges. this is an opportunity for us to provide feedback to the fatf on its 40 + 9 recommendations, including implementation challenges. against this backdrop, the theme of this conference, “ strengthening vigilance during turbulent times ”, aptly describe what i believe should be considered by every institution during this challenging times. this is further supported by the key content of the sessions covering the critical issues to be deliberated by the stakeholders involved in aml / cft. ii. emerging trends and risks of money laundering and terrorism financing it is a permanent battle to put in place a robust aml / cft regime that could effectively deter and detect serious offence by removing the economic incentives attached to the crime. there will be continuous and sustained attempts to out - maneuver the aml / cft system. for this, let me share some thoughts with you on the second theme of this speech, which is on the emerging trends of money laundering and terrorism financing in this region. today, while the purpose and criminal intent remains unchanged, i. e., to disguise illegal proceeds as legitimate assets, the launderers are now using more complex structures and sophisticated methods to launder money and circumvent the preventive measures that has been put in place. allow me to share four examples as follows : 1. it is observed that instead of the simple structuring of transactions ( or smurfing ), recent cases have highlighted the increasing use of third parties to layer the proceeds of crime to distance them from its origins. the setting up of front shops and complex trust accounts using nominees are some of the common tools increasingly being used by the perpetrators ; 2. as reflected in the fatf strategic surveillance survey 2008, there is also an increasing trend of criminals leveraging on technology advancements to further their activities. for this, the use of internet banking, e - money, remittance