Given the significance of the new developments highlighted earlier, it is our expectation to see the Board of Directors and Senior Management of reporting institutions (RIs) to be the key drivers in AML/CFT initiatives. The Board and senior management are responsible to ensure that the financial institutions stand ready, in terms of controls and resources, to face the upcoming developments and challenges. For this purpose, it is pertinent that, in implementing an AML/CFT internal programme, the board of directors and senior management ensure that it is in compliance with the AMLATFA and the related regulatory guidelines, in particular, the three important aspects of an AML/CFT internal programme. The first aspect, i.e., customer due diligence or CDD, is the foundation to effectively prevent criminals from accessing the financial system. In today’s internet environment and technologically savvy society, cross border transactions can be executed within seconds. It is for this speed in which transactions can be carried out that we need to be vigilant to ensure that the provisions of such excellent systems are not abused for illegitimate purposes. We just like to emphasize on ways to look out for false identity, complex structure with the intention to hide the true beneficial owner and the use of gatekeepers as proxies. The second important element of the AML/CFT programme, is the submission of suspicious transactions reports or STRs and Cash Threshold Reports or CTRs to the Financial Intelligence Unit of Bank Negara Malaysia.
I am also glad to note that some of the CEOs of our financial institutions will be sharing their insights on this issue and how they drive AML/CFT issue in their institutions. I hope that this sharing of insight will be an annual event, with better participation from other institutions. More importantly, I hope that this event will be the catalyst for more robust and comprehensive AML/CFT measures in each of the financial institution in Malaysia. We are to internalise the theme “Strengthening Governance to Derive Value” in our institution. BIS Review 99/2010  5