##tances for social and economic development through our economic and financial learning program. challenges however, while we have positives, there are concerns that we need to address. foremost is the adverse impact on remittance costs and flows of the closure of accounts of several money transfer operators ( mtos ) by correspondent banks who are limiting their exposure to possible channels for money laundering and other financial crimes. this is a derisking strategy largely driven by business decisions of foreign banks, weighing the risks and benefits of dealing with remittance companies. this has been going on in recent years and has not been helped by the present money laundering case here. since the closures limit the players that can competitively operate in the remittance market, this has the potential to reverse the steady gains we have made in reducing remittance costs. de - risking may also result in movement by ofs toward informal remittance channels and subsequent financial exclusion. in the end, this may exact an even larger toll on the ofs and their families in terms of deprivation of access to safe and reliable financial services. we are therefore addressing this issue. as early as 2014, we started raising our concerns on the adverse impact of de - risking with relevant international institutions. this includes the financial action task force, alliance for financial inclusion, the global partnership for financial inclusion of the g20, the us department of treasury, the financial stability board, and the world bank. in addition, we are gathering data and closely coordinating with concerned stakeholders for a more evidence - based response. among others, we have an ongoing national risk assessment ( nra ) which is an inter - agency effort to evaluate the country ’ s money laundering and terrorist financing vulnerabilities and weaknesses. this will enable us to sharpen our focus in ensuring effective enforcement of international standards against money laundering and terrorist financing. bis central bankers ’ speeches on the other hand, there is a silver lining : technological innovations from the market promise more cost - effective remittance channels. in today ’ s language, these are called “ disruptive innovations ”, the act of creating new value chains from existing markets or value chains. the advent of more affordable smart phones has encouraged new players ( e. g., financial technology companies or fintechs ) and new business models to address the problem of cost. there are now online money transfer services that are linking international remittances to facebook. 3 customer acceptance of these developments seems likely. in a recent global survey

and put in place cohesive reforms to safeguard the philippine financial system from the impact of climate change and other environment and social risks. indeed, the financial sector holds a unique position in advancing the sustainability agenda. clearly, we can no longer afford to ignore climate change or sustainability issues as a governance priority. by deciding to finance sustainable projects, you create more value for the company ’ s stakeholders while preserving the environment and humanity. the current covid - 19 pandemic also offers a window of opportunity for re - shaping the industry ’ s 3 / 4 bis central bankers'speeches future. let ’ s not put this crisis to waste and build a climate - resilient, green, and sustainable economy. thank you and good afternoon! 4 / 4 bis central bankers'speeches