##desbank. small and medium - sized firms in germany are those with sales of less than 50 million euros. households'disposable income as of the end of 2019, so much higher than the proportion for the united states ( chart 18 ). moreover, dividend and interest income is small, at 4 percent, suggesting that households'income is highly susceptible to the earning power of the firms where they work. almost 70 percent of japanese workers are employed by small and mediumsized firms and stay at the same firm for a long period of time. however, about 60 percent of such firms operate at a loss and expectations for sustainable wage growth are low. 12 many households tend to have a higher preference for holding on to their cash and deposits so as to be prepared for future expenses. to boost their earning power, an effective option is to hone capabilities by reskilling, or acquiring new skills, seek to earn higher wages commensurate with ability, and change jobs, as is the case in the united states and europe ( chart 19 ). the job - switching rate in japan has remained lower than those in the united states and europe ( charts 20 and 21 ). however, labor market conditions are tight, as evidenced by the unemployment rate being at a historically low level of 2. 5 percent for june 2023 ( chart 13 ). if a smooth migration of labor is made to growing industries, where wages are higher and aggressive investment in human resource development is made to boost the value of employees, this will enhance the added value of entire regions and accelerate the virtuous cycle of growth and profit sharing. my view is that this will turn hope about wage growth that can keep up with inflation into confidence. in the guidelines for integrated threepronged labor market reforms that it announced in may 2023, the japanese government has committed to compiling various models for job - based pay according to the actual circumstances of individual firms by the year - end. at the same time, the government is planning subsidies and tax reforms in terms of facilitating diverse working styles and labor mobility. i am paying attention to the positive responses from firms and households in this regard. another key to strengthening households'earning power is increasing their dividend and interest income. in japan, cash and deposits make up 54 percent of household financial assets, while equity and investment trusts make up 15 percent. compared to the united states and germany, there is a higher preference in japan for holding on to cash and deposits ( chart

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