- related activities. a more dynamic and intelligent system, based on real - time data analytics supported by artificial intelligence and machine learning would be useful in detecting and halting such transactions. importantly, we need to have the capability to detect the interconnectedness between terrorism financing and other crimes including robbery, fraud, kidnapping and drug trafficking. threats of proliferation financing every jurisdiction has a vital role to play in hindering the proliferation of weapons of mass destruction. we must be attentive to the various methods of circumventing sanctions relating to proliferation financing. our monitoring and detection systems must be dynamic to incorporate changes in our environment. there are many documented cases of sanctions circumventions due to lapses in the system. this includes deficiencies in establishing beneficial owners which allows sanctions to be circumvented through conduits such as real estate firms and shell companies. accounts opened with inadequate customer due diligence or transactions without appropriate screening are loopholes that can be exploited. these serve as important reminders that we must be wary and alert at all times in the daily operations. responsibility collectively, the roles and responsibilities that we have, extend beyond the scope of our individual organisations. prevention of financial crimes and terrorism financing is an important element to fortify the agenda of monetary and financial stability of the country. complying adequately with international standards and best practices is consistent towards instilling confidence among stakeholders on the integrity and credibility of our financial system. more importantly, keeping financial crime and terrorism financing in check helps contribute towards the country ’ s security and stability, which is an important catalyst to a balanced economic growth and development. allow me to share some of the ideas and expectations with regard to the responsibilities of compliance officers. as we are all aware, the requirements imposed are now moving towards principle - based rather than that of prescriptive or rule - based. this provides institutions with the authority or freedom to develop their own internal policy that commensurates with their risk and profile while upholding the policy intent. thus, it is up to compliance officers to support the institutions to develop such comprehensive policies and to ensure they are properly implemented within the institution and by all relevant staff. the compliance office should also be proactive in providing accurate and proper information for their clients, especially the general public, on the intent and requirement of their policies to avoid misrepresentations of regulatory requirements and the institutions ’ own business decisions. compliance officers should be proactive in recommending efforts and initiatives within

they bear. as the financial industry evolves into digital, it is inevitable that the industry becomes vulnerable to various new threats and risk factors, especially in the domain of financial crimes and terrorism financing. in the effort to mitigate these risks, it is important that we embrace technology and use it to our advantage in order to strengthen our defences against financial crimes and terrorism financing. there are many areas in which the industry could benefit from the latest in technology. 1. firstly, the enhancement of transaction monitoring and reporting system through the use of advanced big data mining and analysis method. the advancement in artificial intelligence and machine learning enables us to collect and analyse data in a way that was not possible before. this allows us to gain new and important insights that will contribute significantly to the prevention of financial crimes. furthermore, the ability to tap into vast amount of information also helps promote better client management which would encourage wider 1 / 4 bis central bankers'speeches financial inclusion and tailored customer service ; 2. secondly, the use of technology to complement and support the compliance function especially in the area of higher risk. a good example of this is demonstrated through the use of digital verification to overcome challenges surrounding non - face - to - face verification and transaction. online identification recognition and biometric verification such as facial, voice and fingerprints recognition offer a new layer of security and potential increase in efficiency for the financial sector. such advanced systems have the potential to strengthen the existing framework and process to minimise fraud and error. it is all too common to view technology as a disruption and a threat to the way we are used to doing things. nevertheless, when technological change is managed appropriately and its related risks are mitigated, we can turn it into an enabler of progress for the financial industry. there is always a group of people who are relentless in their criminal pursuit of economic profit at the expense of others. it is only through our collective efforts that we can manage this negative externality of technological advancement. challenges posed by cryptocurrency for aml as all of you are aware, the next frontier in the financial industry is the advancement in blockchain technology that allows the existence of cryptocurrency. with the global market capitalisation now standing at approximately us $ 160 billion1, cryptocurrencies could become a major part of the financial system that offers new and exciting opportunities as well as challenges for the industry and regulators. however, cryptocurrency is vulnerable to criminal abuse due to the