speeches to achieve this in a way that contains the external risks that can come with innovation, while allowing the opportunity for great new ideas to unfold and take root. as regulators, we are also continuously learning ourselves about the best way to deal sensibly and proportionately with risks associated with innovation. in this regard, i am pleased to announce that the bank will shortly be issuing proposed regulatory parameters for the conduct of electronic know - your - customer or e - kyc processes for remittance transactions. we expect to finalise the standards for e - kyc by october after receiving industry comments. following this, the existing requirement for face - to - face verifications for onboarding new customers will be removed for companies that have received approval to conduct e - kyc. it goes without saying that the bank fully expects msb companies licensed in malaysia to ensure that innovation is not pursued at the expense of obligations to comply with applicable laws and regulations, and to safeguard legitimate interests of customers. having worked hard to build confidence and trust in the industry and to avert the damaging effects of de - risking that continues to a key challenge in more than a few jurisdictions, actions by any firm to undermine the integrity of the financial system will be met with a strong regulatory response from the bank. that said, the bank has been greatly encouraged by the progress of on - going efforts in the industry to ensure that all companies are fully competent through mandatory aml / cft training programmes conducted by the association. steps being taken to require all compliance officers in the industry to be accredited or certified by recognised professional accreditation and certification bodies will mark another important milestone for the industry. conclusion innovation is ultimately a collaborative process whether it is between individuals within an organization coming together to develop new ideas to give the firm a competitive advantage ; or between companies to share common utilities between policymakers to create conditions that encourage innovation or between industry, governments and multilateral institutions to deepen knowledge and advance policies that increase the impact of innovation on growth and development. the best ideas, and more importantly the ability to put them into practice, will come from our ability to overcome natural instincts to erect protective barriers, and to open up individual companies, institutions and economies to new possibilities that can make us more successful, more competitive and more inclusive over the longer term. this conference is a valuable opportunity for the industry to exchange ideas and reflect on how innovation – not just technological but all facets of innovation – can create a game - changing impact in the industry

mr ferguson reviews the historical perspective and policy implications of global financial integration remarks by mr roger w ferguson jr, a member of the board of governors of the us federal reserve system, at the annual policy seminar of the national association for business economics, washington dc, on 4 / 3 / 99. global financial integration : historical perspective and policy implications thank you very much for inviting me to speak to this distinguished group of business economists and analysts. as we have discovered over the last eighteen months or so, we live in a rapidly changing global economic and financial environment. today, given the theme of your conference, i would like to put the events of the last few years into a broader historical context, and ask what are the most appropriate policy solutions. yesterday and today let me turn to a previous period of close global linkage in economic and financial markets : the forty years or so prior to world war i. here i will draw on a recent nber working paper by michael bordo, barry eichengreen and jongwoo kim. 1 during this time, capital flowed essentially without restriction, chiefly from developed western europe to regions in the then rapidly developing countries of the americas and to australia. just to put this in perspective, these three economists report that at its peak, the outflow from the united kingdom reached 9 percent of gnp and was almost as high in france, germany and the netherlands. much of this capital was invested in bonds that financed railroads and other infrastructure investments and in long - term government debt instruments, but there was also significant direct foreign investment. bordo, eichengreen and kim find that one element of the pre - 1914 episode of global financial integration is the size and persistence of the current account deficits of capital importing countries, mainly australia, canada, argentina and the scandinavian countries. similarly, the current account surpluses of some capital exporters, particularly the united kingdom, showed considerable persistence. these economic historians indicate that it was not unusual for these countries to experience current account imbalances, deficits for the capital importers or surpluses for the capital exporters, of between 5 percent and 10 percent of gdp lasting for several years. the size and persistence of these capital account imbalances in the pre - 1914 period appear to compare roughly with the size of current account imbalances that have existed in the most recent period of global financial integration. economic historians indicate that during the period from 1971 to 1997, emerging market countries were running, on average, current