muhammad bin ibrahim : future responsibility and response - ability proofing compliance - keynote address by mr muhammad bin ibrahim, governor of the central bank of malaysia ( bank negara malaysia ), at the 9th international conference on financial crime and terrorism financing ( ifctf ) " future proofing compliance : responsibility and response - ability ", kuala lumpur, 4 october 2017. * * * " compliance, past and future " this is an important and serious gathering. i am encouraged to see many leaders and key compliance officers of the financial industry here at the international conference on financial crimes and terrorism financing, signifying the industry ’ s commitment to a safer and more secured financial system. it is worth repeating that public trust and confidence in the financial system cannot be compromised. the cost of financial crimes and terrorism financing are staggering. based on the united nations office on drugs and crime ( unodc ), money laundering transactions are estimated to cost economies between 2 % to 5 % of global gdp. this equals to usd1 to 2 trillion annually. it is a humongous amount. beyond monetary terms, these activities have destructive consequences for the lives of many, especially the poor and underprivileged. we must do better on this if we really want to ‘ future - proof ’ our financial system. three points are worth mentioning on compliance : first, it is not the end, it is a means to an end ; second, it should be viewed within a broader context of a financial institution ’ s responsibilities to society ; and third, it should be approached in partnership with other key participants in the financial system. compliance as a means to an end the past decade has been a turning point for compliance. arising from major systemic failures of governance, regulators have since elevated the importance of compliance. for good reason, this has led to tighter regulations, greater scrutiny and stronger enforcement. the industry has in turn, invested heavily in their compliance function. it is estimated that some firms could spend up to 10 % of their revenues on compliance within the next few years. this is by no means an insignificant amount. yet, as we have seen over the recent years, this has not put a stop to money laundering and terrorism financing. a case in point is a major bank in the asia pacific region which is being investigated for more than 50, 000 violations of money laundering and terrorism financing. perhaps we need to take a step back and question if the industry has the right understanding of compliance. if the motivation for the increased compliance is merely

may 17, 2019 bank of japan outlook for economic activity and prices and monetary policy speech at a meeting held by the naigai josei chosa kai ( research institute of japan ) in tokyo haruhiko kuroda governor of the bank of japan ( english translation based on the japanese original ) introduction it is my pleasure to have the opportunity to address you today at the naigai josei chosa kai. at the monetary policy meeting ( mpm ) held at the end of last month, the bank updated its projections for japan's economic activity and prices through fiscal 2021 and released them in the april 2019 outlook for economic activity and prices ( outlook report ). in addition, with a view to making clearer its policy stance to persistently continue with powerful monetary easing, the bank decided to take some additional monetary policy measures. today, i would like to talk about the bank's outlook for japan's economic activity and prices based on the outlook report, as well as its current thinking behind the conduct of monetary policy, including the decision at the recent mpm. i. economic developments developments in overseas economies let me start by talking about developments in overseas economies. overseas economies have been growing moderately on the whole, but slowdowns have been observed recently ( chart 1 ). unlike the synchronous growth of the global economy seen through the first half of last year, differences in growth rates among regions and industries have become evident. while the u. s. economy has continued to expand firmly, relatively weak developments increasingly have been observed in the chinese economy because economic activity has been hampered by the trade friction between the united states and china as well as adjustments in the it sector, in addition to the impact of authorities'measures to push forward with deleveraging. as for europe, production has declined since the second half of last year, mainly in germany, reflecting the tightening of gas emission regulations on automobiles within the european union ( eu ), and weaker exports to turkey and china also have been exerting downward pressure on the european economy recently. under these circumstances, in the latest forecasts released by the international monetary fund ( imf ) last month, the global economic growth rate for 2019 is projected to be 3. 3 percent, which was further revised somewhat downward from the previous forecasts released in january. thus, the growth rate for this year is likely to fall slightly below the long - term average since 1980 of 3. 5 percent. current situation of japan's economic