##es, enforcement action by the central bank may follow. we have been active in taking enforcement cases against regulated firms. last year alone, fines totalling over €8. 4 million were imposed on firms. enforcement will remain an integral part of our strategy and this is in keeping with best international practice. the responsibility for ensuring regulatory compliance, of course, lies not only with the regulated entity, but also with those holding relevant functions within the firms. on the basis of the central bank reform act 2010, we have put in place a pre - approval process for persons who apply for relevant positions ( called pre - approval controlled functions or pcfs ) in regulated firms, to ensure that they meet the required standards of fitness and probity. this approach is very important since business decisions do not just happen, it is the people who run business who take them. if concerns arise that a person or persons in controlled functions in a regulated firm do not meet the required standards of fitness and probity, they may be investigated by the central bank and could ultimately be prohibited from carrying out a controlled function in their firm, or any other regulated firm. these powers equip us to ensure that the people in senior roles are capable, competent and act with integrity. the central bank will continue to focus on anti - money laundering compliance. in early 2016, the financial action task force will review our compliance and ireland has much to lose if its adherence with the highest standards of anti - money laundering procedures is left open to doubt or criticism. our current self - assessment is that we have a distance to travel in this area if we are to reach international standards or best practice. it is likely that the current imf review will concur with this view. it is therefore important that we continue to focus on this area and you can expect our supervisory focus on aml to remain high. consumer protection the third level upon which financial regulation operates is that of customer protection – one in which the central bank of ireland has been very active at a domestic, eu and international level, not least in 2013. our overarching aim here is “ to get it right for consumers ” and this mission is underpinned by our 5cs framework. this framework focuses on achieving outcomes for consumers under key headings : placing the consumer at the centre of the regulatory framework, promoting a consumer - focused culture ( as in our ongoing work on sales incentives across the sectors, the importance of which is borne out by the level of red

constantinos herodotou : technology - enabled financial services opportunities and challenges in the payments landscape speech by mr constantinos herodotou, governor of the central bank of cyprus, at the association of cyprus electronic money & payment institutions, nicosia, 28 september 2023. * * * ladies and gentlemen, it is a pleasure to speak to you today and i wish to thank the association of cyprus electronic money & payment institutions for the invitation. the co - existence of traditional banks and innovative fintech companies is transforming the financial sector landscape. this co - existence represents a dynamic interplay of collaboration and interdependence, fostering a complex, yet promising future for our financial ecosystem. the market in which traditional banks and fintechs operate, is also characterised by competition as fintechs gain market share in payment services. this also enables them to cross - sell other services, such as currency exchange, stocktrading, insurance and commodities. in this symbiotic relationship, banks and fintechs stand to benefit by capitalising on each other's strengths, in their efforts to deliver high - quality services to their customers. there are significant advantages in combining the network and regulatory expertise of traditional banks with the agile and innovative operating models of fintechs. however, innovation comes with challenges and risks. as such, the central bank of cyprus has a dual role to play : it encourages innovation and the opportunities that are created by digitalisation. in parallel, it is its duty to maintain a watchful eye on new and untested technologies in our local market, in order to ensure that no undesired risks are introduced, which may penetrate through the local financial sector due to the interdependence i just referred to. and this leads me to my next point, which is the innovation hub initiative that i recently introduced at the central bank of cyprus. through the establishment of the innovation hub, the central bank of cyprus embarks on an ongoing and constructive dialogue with innovative firms, fostering the implementation of novel ideas and the adoption of pioneering technologies. our aim is to simplify the process for innovative firms to understand and navigate their regulatory obligations within the financial system. the innovation hub aims to offer prompt responses and non - binding guidance to interested firms. the audience here today is an important representation of the local fintech community, and as such the central bank of cyprus extends an open invitation to all of you to engage with us through the innovation hub, in order to build