efforts, and better coordination among key stakeholders, both domestically and internationally, to address this concern. strong governance among the stakeholders, however, remains the key and integral component within the national aml / cft framework, to prevent the escalation of ml / tf risks. more importantly, strong governance in financial institutions is and will remain a critical safeguard and is pertinent in the overall prevention of ml / tf activities. striving to enhance the level of governance in this area will not only result in lowering the overall threat of ml / tf in malaysia, but would also enable the financial institutions to derive greater value for themselves, and in the process, reduces the cost associated with the ml / tf prevention activities. i will briefly share my thoughts today on this issue by covering three key items ; firstly ( a ) the current emerging trends of ml / tf ; secondly ( b ) policy and strategic response by the authorities in malaysia on these emerging trends ; and finally ( c ) our expectations on the financial institutions in response to these trends. emerging ml / tf trends ml / tf is notable for the diversity of its forms, players, location and settings. while it is normally described in the sequential elements of placement, layering and integration, the real activities are very fluid. recent global ml / tf trends indicate that the criminals, especially the professional launderers, will exploit every possible gap in the formal and informal financial system to launder the illegal proceeds. they are known to misuse the payment and fund transfer system, including wire transfer and remittance services, internet payments, mobile payment and stored value card, to channel the illegal proceeds within and across borders. the traditional laundering methods of cash smuggling, via casino, investment and insurance policies are increasingly being used together with other methods such as through the banking facilities to avoid detection. in march 2010, the financial action task force ( or fatf ) issued a report on money laundering vulnerabilities of free trade zones, indicating the rising threats of trade based money laundering. apart from this report and the periodical typologies reports, the fatf has issued a number of reports relating to specific laundering methods ; such as through securities, football and gaming sectors in 2009 ; vulnerabilities of internet payment system and commercial websites in 2008 ; and the real estate sector, vat carousel fraud, and the misuse of corporate vehicles, such as trust and company service providers in the previous years. for

in order to address the challenges accompanying these processes of economic adjustment and structural reform will be discussed tomorrow. given that the policy panel will consist of high - calibre policy - makers from both old and new member states and from eu institutions, one does not have to be a follower of the rational expectations hypothesis to anticipate a lively debate, be that on labour and product market reform ; on financial sector policies ; on monetary and fiscal policies ; or on exchange rate policy and the merits of erm ii membership. ladies and gentlemen, as i said at the beginning, this is the third time - the third time the ecb is organising a central banking conference. and i hope there is not only good luck in odd numbers. i also hope that our third conference will again offer a valuable forum to have intellectually stimulating debates, exchange insights, generate new ideas, and enhance the good contacts between central bankers and academia. judging by the experiences of the first two conferences, i have every reason to be confident. thank you very much for your attention.