at our end, bank negara is in the process of reviewing our aml / cft policies. a key outcome of this review is the move of our regulatory framework towards being more “ risk - based ” and “ principles - based ”. we have come a long way since the amla was gazetted in 2001. since then, reporting institutions have matured in understanding and have fully implemented the regulatory requirements. this is also supplemented by the issuance of various guidance, technical notes and updates on regulation. we believe that the industry is ready to build and expand its capacity in this area. while we are moving to being more risk - based, there is still a lot more to be done. this includes educating everyone in the industry that “ risk - based ” does not mean “ total risk aversion ”. while it is crucial to protect our financial system from being abused, it is also necessary for financial institutions to serve their roles and purposes in the economy and for the society. accordingly, the new 1 / 3 bis central bankers'speeches regulatory framework demands reporting institutions to take greater ownership of their individual aml / cft frameworks. reporting institutions must strengthen their internal governance and controls to preserve financial integrity, not because bank negara tells them so, but because it is the right thing to do. this demands a high level of maturity by the industry. for individual institutions which have established a mature control environment, there will be greater latitude to design control frameworks in a way that is more operationally flexible. on the other hand, for individual institutions who are not quite there yet, the new framework raises the compliance bar, calling for them to strengthen awareness, governance and processes to ensure they have the capabilities to preserve integrity of the financial system. on this point, i wish to applaud the financial services professional board ( fspb ) on its recent publication of standards on whistleblowing and on managing conflicts of interest. by working together to set and voluntarily commit to baseline standards, the industry can demonstrate its readiness for a more risk - based regulatory approach. i hope that the industry will adopt these standards and this means moving beyond symbolic gestures, to the diligent implementation of policies and programmes that promote the desired culture. bank negara is also committed to ensuring that regulatory requirements support the country ’ s digital economy agenda. we are in the midst of developing e - kyc policy guidance to streamline practices of industry players in leveraging new technology. the guidance will clarify desirable

nor shamsiah mohd yunus : building trust and transparency collaborate, accelerate, strengthen speech by ms nor shamsiah mohd yunus, governor of the central bank of malaysia ( bank negara malaysia ), at the 11th international conference on financial crime and terrorism financing ( ifctf ) 2019, kuala lumpur, 5 november 2019. * * * last year, i spoke at this same conference about our shared responsibility to combat financial crime and the need for us to have a deep understanding of new and emerging risks. i also called on reporting institutions to strengthen their compliance functions. i was therefore delighted to learn that the theme of this year ’ s conference is “ building trust and transparency : collaborate, accelerate, strengthen ”. this afternoon, i would like to briefly expand on some of the ideas that i put forward last year, which will build on this year ’ s conference theme. first, on the point on collaboration. we speak a lot about how combating financial crime is a shared responsibility. this is because of its massive impact, imposing a cost to governments, businesses and individuals. a thompson reuters report from 2018 revealed that nearly half of 2, 000 plus large companies surveyed were victims of financial crimes in the past one year, losing an estimated 3. 5 % of their turnover. this goes to show that this is a battle that needs to be waged together. key to this is the sharing of information. over the years, we have put in place various arrangements to enable smooth information flows between the financial sector and the law enforcement community, within a controlled environment. these “ public - private partnerships ” ( ppp ) are vital as they allow the financial intelligence unit, law enforcement agencies and reporting institutions to leverage on intelligence - led collaboration and information sharing to detect financial crime and terrorism financing. this will further support investigation and prosecution processes. for malaysia, our goal is to formalise and further deepen what we have built over the years. as such, i am pleased to announce that the ppp will be officially launched shortly by our prime minister. i wish to also express my appreciation to other participating agencies in the ppp namely polis diraja malaysia, the suruhanjaya pencegahan rasuah malaysia, jabatan kastam diraja malaysia and the securities commission malaysia, and also the 18 reporting institutions. second, reporting institutions must accelerate efforts to further expand and develop their aml / cft toolkit to deal with new and emerging risks.