It is our expectation that the board of directors and senior management of institutions to play their roles in ensuring that the compliance programme is fully implemented and that any money laundering and terrorism financing activities are promptly detected and reported. Hence, I urge all reporting institutions to improve both the quantity and quality of STR submitted. In the same vein, the FIU will continue to improve its feedback mechanism to reporting institutions. The fourth area is to give greater emphasis on compliance. This is important so as to improve the compliance level among the reporting institutions in order to preserve the integrity and stability of the financial system. More focus will be given to enhance and raise the compliance level among DNFBPs in view of the emerging risks. To this end, greater collaboration between the FIU and the various self-regulatory organisations would be pursued actively during the year. BIS Review 46/2009  3  The fifth and last area is to ensure that the enforcement of the AML/CFT regime should be achieved without undue increase in the regulatory cost. It is important that the controls in place are commensurate with the associated money laundering and terrorism financing risks and the risk mitigation measures are adequate. This underscores the progressive introduction of more risk-based approach in the national AML/CFT regime. I understand that this is among key topics to be discussed in this conference, and I am sure it will generate interesting discussions between the experts and the participants.
Global financial stability hinges on collective action at the international level, as well as the existence of effective national systems. Financial stability is also closely linked with financial integrity. The lack of anti-money laundering and the combating of the financing of terrorism, or AML/CFT regime, can contribute to undermine the soundness and stability of financial institutions and systems, discourage foreign investment, and distort international capital flows. The global financial crisis amplifies such risks. In fact, 2009 is anticipated to be another highly challenging year, in which the full impact of the economic slowdown will continue to be global in nature. In this more fragile environment, problems in one country can quickly spread to other countries in the region or in other parts of the world. This, therefore, brings us to the first theme of my speech that is for everyone to remain vigilant. In the financial sector in particular, financial system and institutions should continue to  BIS Review 46/2009  1  support the economy and protect it from abuses, including by money launderers and terrorist financiers. For Malaysia, the Government has recently announced a RM60billion stimulus package, i.e., the second stimulus package, and we expect to see its full impact during 2009 and 2010. We are quite fortunate that the banking system entered this difficult period from a position of strength. It is important to have a high level of vigilance to ensure that the banking and finance sector continues to support the economy.