currently do omo but you will continue to transact omo with our treasury department. the bsp will conduct consultations and briefings with you and other stakeholders ( possibly starting next month ) before we commence conducting omo using the irc system in the second quarter of 2016. in our pursuit of financial stability, we will continue to actively assess evolving market conditions while performing stress tests and network analysis. we have an uncompromising policy focus on mitigating the build - up of what we refer to internally as “ c2l2 ” ( c - l - 2 ) or the risks of contagion, concentration, leverage and liquidity. we put ourselves to be thought leaders in global and regional initiatives. this includes work on financial inclusion, financial literacy, and consumer protection as well as the integration of the regional financial market, including the requisite capacity building initiatives. we support the principles espoused by global and regional reforms but we do so in the form that is best suited for our requirements. we continue to actively engage other government agencies through the financial sector forum and the financial stability coordination council, and pursue interagency collaboration, for example, with da / dar and hlurb for agri - agra and housing issues, while openly collaborating with private sector entities such as the six organizations represented tonight. final thoughts it is clear that we all desire to be stronger in this increasingly interconnected yet fluid world. in doing so, however, we need to go beyond the confines of trade blotters, budgets, and bottom lines because financial markets “ draw ” a much more intricate picture on a canvas that is much larger than one ’ s balance sheet. for certain, how things “ hang on balance ” is not a trivial quest because there are many stakeholders and because financial risks evolve, comingle and recast themselves in a dynamic form. you have heard me say, year after year, at your general assembly that the overall picture is not simply the sum of each market player ’ s position. there are material risks that knowingly or unknowingly fall in between desks or may look benign on everyone ’ s balance sheet. but when these risks fester, they eventually materialize as systemic difficulties. in this light, i want to assure you that regulatory interventions do not simply serve the purpose of making the days of market players challenging. contrary to rumors, the bsp takes pains in crafting an enabling environment because we are able to see the intricacies of the

philippines ’ aml / cft regime. the anti - money laundering act of 2001, as amended, mandates the amlc to develop educational programs on the harmful effects of money laundering, the methods and techniques used in money laundering, the viable means of preventing money laundering and the effective ways of prosecuting and punishing offenders. ladies and gentlemen. the philippines has been making big strides in having a robust legal aml / cft framework. following the enactment by our legislators of the anti money laundering act, we have : • criminalized money laundering • created the anti - money laundering council as the philippines ’ financial intelligence unit • established the mandatory obligations for covered institutions relative to the requirements on customer due diligence, record keeping, and the reporting of covered and suspicious transactions • enforced mutual legal assistance and cooperation ; and finally, • instituted a civil forfeiture system in addition, the supervising authorities have issued circulars and guidelines to covered institutions regarding correspondent banking, politically exposed persons, wire transfers, alternative remittance systems, as well as cross border transportation of currency, and un security council resolutions on designated terrorist individuals and organizations. as of today, we have one successful money laundering conviction and 37 money laundering cases pending before the regional trial courts, the ombudsman, and the department of justice. and there are other charges we are preparing to file in our courts. however, we do face new challenges from globalization and the internationalization of money laundering and terrorist financing techniques. in addition, new and evolving technologies and financial systems are being used by money launderers to weave a complex trail that is difficult to find and unravel. as money launderers continue to refine their techniques and find new avenues for their illicit operations, so must we work together to fortify our defenses to prevent or stop them. otherwise, we risk having a threat to the reputation and viability of our financial system. it is in this context that we have been proactive in the philippines. the anti money laundering council, which i chair, has taken important initiatives to broaden the philippines ’ aml / cft strategy, to intensify its position as a partner of the global community in the fight against money laundering and terrorist financing, and to align our aml / cft regime with the international standards of the fatf. on the other hand, as the international watchdog on aml / cft issues, the financial action task force, has issued the fatf 40 + 9 recommendations