service providers. the policy document on the management of customer information and permitted disclosures ( mcipd ) likewise addresses risks to data privacy to consumers. 3 / 5 bis - central bankers'speeches while our current regulatory framework may not necessarily single out ai as a technology, it applies to the use of ai systems and is designed to address risks in a technology - agnostic way. how, then, do we identify and prepare for risks that are still unknown or emerging? globally, financial institutions, regulators and international standard - setting bodies are generally converging on guiding principles for the responsible use of ai. these include fairness, inclusivity, transparency, robustness, and accountability. for financial institutions, responsible ai can be fostered through strong internal governance and risk management practices. at our end, bnm is committed to ensuring that our regulatory framework continues to remain proportionate to risks as we unlock the upsides of innovation. this means creating a conducive environment where responsible innovation and healthy competition are nurtured, novel business models and new entrants are given an opportunity to flourish, and associated risks are managed effectively – especially those that may threaten system - wide stability, consumer outcomes, and confidence in the financial sector. towards this end, the bnm regulatory sandbox can play a key role in facilitating the testing of innovative ai use cases where there are any existing regulatory impediments. in such cases, the sandbox may enable financial institutions to assess the feasibility of new ai - enabled use cases while providing bnm with insights into both opportunities and risks associated with these innovations. so far, the sandbox has played a role in facilitating the testing of innovative use cases and business models, including digital remittance, e - kyc, buy - now - pay - later and digital insurance. finally, it is worth highlighting that the financial industry also plays a role in responsible co - innovation to effectively overcome challenges faced and realise the potential of ai in finance. firstly, the industry can work together to share knowledge, best practices, and ai tools to lower costs, foster the development of common standards, and elevate standards of risk management in this emerging area. one example is the industryled development of ai guidelines and risk management best practices by the chief risk officers'forum. we hope to see further similar efforts across the industry, in addressing areas such as responsible ai use and the development of tools or standards for addressing fairness concerns. secondly, it is key that consumers

region through observance of the insurance core principles as an important precondition for more integrated insurance markets. this process has been supported by the asean insurance regulators forum and its training arm. going forward, progressive liberalisation of the insurance sector in the region will be guided by the asean insurance integration framework. in this regard, asean members have agreed to prioritise efforts to liberalise the cross - border supply of marine, aviation and goods in international transit ( mat ) insurance and to support the establishment of an asean disaster risk financing and insurance ( drfi ) mechanism. progress in these areas will enable asean members to increase capacity for such risks which are growing in scale and complexity, and achieve broader diversification of risks across the region, leading to lower costs of insurance. it will also enhance the protection of asean communities and economies against increasing exposures to catastrophes. significant progress has also been made in promoting freer flow of capital and greater connectivity between the asean capital markets through the various initiatives and measures by the asean capital markets forum. market participants can look forward to more seamless cross - border investments with reduced costs and greater access to asean investments. financial integration initiatives are also focusing on harmonising further the operating environments for payment systems within asean countries. a key outcome is to create an efficient, reliable and secure payment and settlement system which is able to operate smoothly across asean. consumer transactions such as cash withdrawals and payments for goods and services will be further simplified, contributing towards the growth of retail businesses in asean economies. the development of more convenient and cost effective retail payment systems can also help realise the full potential for e - commerce in asean. efforts are also underway to promote the use of asean currencies for trade settlement. this will diversify the use of currencies by importers and exporters. the use of domestic currency for settlement of trade reduces the exposures to currency risk and costs associated with the need to hedge against such risks. collectively, these initiatives bis central bankers ’ speeches are expected to contribute towards further deepening trade and financial integration in the region. priorities going forward with the developments described just now, in moving forward, we can expect the financial integration process to continue to gather momentum. to my own mind, an important question for policymakers and financial institutions is where should we focus our attention and efforts to adapt to the changes ahead? while further financial integration process has captured the imagination of many, because of the numerous benefits and opportunities, at the same time, policymakers