a complement, to a well - functioning banking union. ladies and gentlemen, this conference was conceived from the very start as a forum for discussing in depth these issues. as things have turned out, the discussion now takes place in the context of the european commission ’ s banking reform package, which was made public on november 23. this includes proposals for the revision of the main ( level 1 ) instruments of the union ’ s single rulebook, that is, the capital requirements directive iv, the capital requirements regulation and, in so far as the resolution regime and, especially, the resolvability and loss - absorbing capacity of credit institutions is concerned, the bank recovery and resolution directive and the srb regulation. the commission ’ s package enhances and brings up - to - date the post - crisis prudential regime by transposing into european law those elements of the global basel iii standards which have been fully specified after the enactment of the capital requirements regulation in 2013. it thus includes substantial new rules on a binding 3 % leverage ratio, detailed provisions on credit institutions ’ liquidity requirements, and provisions, requiring institutions that trade in securities in derivatives to maintain more risk - sensitive own funds. moreover, it implements the financial stability board ’ s new total loss - absorbing capacity ( tlac ) standard for the 30 global systemically important institutions, almost half of which are european. in a very promising development, the commission used this opportunity in order to introduce significant elements of proportionality in the single rulebook. based on extensive public consultation and impact assessments relating to the crd / crr regime, it has included in its package a set of important proposals that are explicitly intended to make the prudential regime more proportionate and to reduce the burden faced by smaller and less complex credit institutions. the proposed amendments affect, in particular, the disclosure, reporting and tradingbook - related capital requirements. furthermore, they differentiate the treatment of certain financial instruments, such as covered bonds, high quality securitization instruments, sovereign debt instruments and derivatives used for hedging, with a view to reducing the costs of issuing or holding such instruments, thus enabling the continuing participation of banks in the relevant securities markets. in this manner, the regulatory regime is differentiated to facilitate the deepening of european capital markets and the creation of the capital markets union. one could argue that the inclusion of strong elements of proportionality in the banking reform package marks a move away for the traditional tendency of european law to regulate financial

its increasing association with high - risk money laundering crimes, especially fraud. advances in technological solutions such as ai, virtual assets and social media platforms, coupled with an increasing prevalence of cross - border elements have made fighting financial crimes much more complex. 1 / 4 bis - central bankers'speeches this brings me to competence. first, as criminals adopt technology, we must also harness technological innovations to stay ahead in our fight. thus, financial institutions must continuously invest in the latest technology solutions to detect threats and protect customers against financial scams. on this front, we welcome the financial industry's recent implementation of malware - shielding technology on banking applications to curb malware - related scams. second, financial institutions must continuously invest in strengthening staff capabilities. it bears reminding that in this situation, people still lie at the core of our solution to crime. it is people who perpetrate crime using sophisticated tools. it is also people who will stop them. investing in skills, knowledge and talent should not be considered as a " cost to doing business ". it is critical for maintaining trust and confidence in the banking and financial system. in this regard, i call on financial institutions to invest in upskilling their staff. institutions, such as aicb and compliance officers'networking group ( cong ), are certainly playing an important role in meeting this need and the recently launched future skills framework for the malaysian financial sector is certainly timely. in considering competencies, we should not be limited solely to technological aspects. a serious defence warrants an institution - wide strategy toward risk management. competencies in other areas of risk are just as important : compliance, legal, and reputational – they all form part of an institution's bastion of competencies in fighting crime. there is one other area that underpins and sustains competence, and that is governance. this brings me to the second principle, that is commitment. part 2 : commitment – accountability at every level ladies and gentlemen, the financial industry is an efficient and massive network that connects resources with needs. but this efficiency is a double - edged sword : poison that enters at one point quickly spreads to infect the rest of the network. that is why financial institutions, in fighting financial crimes, carry the responsibility as a first line of defence. for instance, you play a critical role in preventing criminals from using financial institutions to launder the proceeds from illegal activities. the nra 2023 identified the top five high - risk crimes that pose significant money laundering threats