17. the first issue is technological innovation - both in the form of financial technology and regulatory technology. regionally, technology is making our financial institutions and their customers more connected than ever. technology is an enabler, while it also brings risks along with rewards. easier access to financial services benefits us all, but there is a risk that it may also create more opportunities for criminals - if it ’ s convenient for us to move money in real time using our smart phones, it would also be convenient for money launderers as well. and there is no shortage of smart people looking for ways to exploit such new developments. 18. but technology, especially the fast - growing field of data analytics, has the potential to offer more effective and efficient ways to undertake our aml work. in particular, recent developments in artificial intelligence and data analytics, while still at an early stage, appear promising. for example, ai is already being used to – apologies for the jargon – “ triage ” alerts generated by monitoring systems to make subsequent case investigations by oldfashioned human beings more focused and efficient. and data analytics is being used to identify what normal behaviour looks like for particular segments or types of customer, thereby making it easier to spot behaviour that departs from the norm and which may therefore need to be scrutinised further. this has the potential to make monitoring less “ expost ” and allow potential problems to be spotted in real time to a greater extent. and i would once again stress the word “ efficient ” here : the hkma is a banking regulator and we have an interest in seeing the banking sector ’ s cost - to - income ratios kept down, while without compromising effective controls. 19. the second issue i would like to highlight is a emerging focus internationally on the sharing of information between the public and private sectors, which i believe offers great potential in enhancing the effectiveness of our aml efforts. increasingly, law enforcement agencies, regulators and the financial sector are cooperating in ways that go beyond the filing of strs and assistance with investigations although these, of course, remain essential. the focus is now more on two - way sharing of information on trends and typologies. 20. in hong kong, the fraud and money laundering intelligence taskforce, led by the police and with participation by the hkma and the banking sector, was established as a pilot scheme in 2017. this is a public - private platform along similar lines to initiatives overseas, notably in australia

conference. all in all, i would emphasise that the global aml landscape is an evolving one - geopolitical developments will continue to affect sanctions risks, criminals will come up with new ways of stealing money and of hiding and moving those money. technology can hinder or help us in our aml efforts, and i have to say that although we are already doing a lot, we are far from having the perfect solution. the challenge that we face collectively, in the region, is to develop responses to existing and new risks that : are agile and adaptable, while providing a framework of principles and rules that that we can all agree to and follow ; recognise innovation and make the best use of technology ; and perhaps more importantly challenge our established ways of meeting some expectations, and ensure the response always relates to effectiveness. 24. i note that you have a very full agenda the coming days covering these and other topics. and i hope very much that my remarks will offer you some food for thought about the issues and challenges that we all face. i wish you all fruitful discussions on these issues. and once again, thank you very much to acams for inviting me here today. 4 / 4 bis central bankers'speeches