encik abu hassan alshari yahaya : financial crime and terrorism financing keynote address by mr encik abu hassan alshari yahaya, assistant governor of the central bank of malaysia, at the 5th international conference on financial crime and terrorism financing ( ifctf 2013 ), kuala lumpur, 23 october 2013. * * * it is a great pleasure for me to be here today and i would like to thank the conference organiser, the asian institute of finance in collaboration with the malaysia ’ s compliance officers ’ networking group, for the invitation to deliver the keynote address at this 5th international conference on financial crime and terrorism financing. i am happy to note that this annual conference has received strong response and continued to provide industry players with the developments in the area of financial crimes and terrorism financing and how financial service providers and relevant businesses and professions could continuously strengthen the capacity and capabilities in addressing these risks. i am glad to note that there has been an increased participation from the designated nonfinancial businesses and professions ( dnfbps ) in this year ’ s conference. this reflects heightened awareness and seriousness by the dnfbps to improve their compliance and understanding of their roles in combating money laundering and terrorism financing. i am also informed by the organisers that the malaysian bar council, the malaysian institute of accountants and the association of money services business have also reached out to their members to attend this and by accrediting this program as part of the continuous professional development. ladies and gentlemen, weaknesses in risk governance have been one of the major cause for the recent global financial crisis. until now, risk governance remains a work in progress as evident from the recent money laundering control failures experienced by some big financial institutions in developed economies. the theme for this year ’ s conference, the “ risk, governance & selfregulation : within and beyond ”, is not only timely but also an ongoing self - reflection for all of us. the organisers have also impressed upon me that this year theme is a continuation of 2012 theme of “ compliance, challenges and effectiveness : the next level ”. after the efforts in putting in place the appropriate risk management framework, it is time for us to ask ourselves the following questions : have we done enough on risk and governance? and can we do it better? sound risk management is fundamental to preserve the integrity of the financial system and there has been increased attention given to this area. in my remarks today, i intend to focus on the following key points and highlight initiatives

vehicles. demand will also grow for green services, such as forest management, sustainable engineering and design, green finance, and emissions measurement and tracking solutions. fifth, inflation is likely to be higher during the long transition to net zero. higher energy prices will feed through into the production of many goods, and prices overall will rise. the bank of england estimates inflation will increase by nearly 0. 6 percentage by the early 2020s if there is an orderly transition to net zero and 2 percentage points by the early 2030s if the transition is disorderly. we are probably seeing a preview of that scenario currently. but it's not just energy prices. demand will surge for minerals such as copper, aluminium, cobalt, lithium, nickel, and rare earths, which are critical to various clean energy technologies, including wind turbines and electric vehicles. for example, solar or wind power plants use up to six times more copper than conventional power generation. according to the iea, a world on track for net - zero in 2050 will need six times as much of these materials in 2040 as it does today. the result is greenflation, or rising prices for these metals and minerals that are essential to renewable energy and technologies. sixth, the labour market will undergo a major adjustment. jobs will be lost in traditional carbon - intensive sectors but new jobs will be created in carbon - neutral industries. it is estimated that about 200 million jobs would be created and 185 million lost globally by 2050 from a net - zero transition. there will be a period of net job losses during the transition : foundry workers will not instantaneously be transformed into building - insulation experts. worker reskilling and redeployment will thus be crucial. identifying skills adjacencies will be a key part of worker retraining programmes. in singapore, a comprehensive strategy to green the economy is taking shape, with a focus on boosting energy and resource efficiency and creating good jobs. 6 / 9 bis central bankers'speeches in the petrochemical industry, all the major players have committed to reach net zero by 2050 and government agencies, industry players, and research institutes are developing capabilities in carbon capture and storage technologies. in the maritime industry, investments are being made to help our port terminals become net zero by 2050 and support the provision of low and zero carbon marine fuels such as ammonia, hydrogen, and biofuels. in road transport, singapore aims to do away with the internal combustion engine and switch