Along the same lines, and perhaps as a result of the deficient information base, very limited research and analytical efforts have been pooled in the central banking community with a view to supporting policy suggestions in the prudential and regulatory area. BIS Review 115/2009  9  4. Turning the clock back  But let me turn the question around and ask: what if the Risk Board had existed in 2006-07? Would this have prevented the financial crisis? This is a difficult question because the modus operandi of the ESRB is still to be defined. It is also difficult to know whether the agreed framework and operational processes will prove to be effective. However, if the ESRB is given the appropriate information base, if it combines central banking and supervisory expertise and is supported by a sound analytical framework and can produce solid risk assessments and policy recommendations, the answer should be positive. Policy-makers, regulators, academics and market participants have learnt an enormous amount from the crisis. As the turmoil spread, they learnt about the functioning of the financial system and the links between the financial system and the real sector. In particular, the crisis highlighted the importance of the shadow banking system in fuelling credit into the economy, of indirect links between the banking and insurance sectors, as well as of fragilities in the securitisation market, just to name a few. However, it seems appropriate to ask: would a pre-crisis ESRB have closely monitored the Asset Backed Commercial Paper (ABCP) markets?
Based on that, the following crimes are classified as medium threats to money laundering situation in Malaysia: •  Organised Crimes  •  Human Trafficking & Migrant Smuggling  •  Forgery  •  Theft and Robbery; and  •  Counterfeiting of Currency  Human Trafficking and Migrant Smuggling, although currently assessed as medium threat is also seen as an emerging threat for Malaysia as this criminal activities is believed to generate substantial proceeds and may be further pursued if not enough enforcement actions are taken by the law enforcement agencies. If left unchecked, this type of crime may have the potential to pose high risk threats to the country from money laundering perspective. The following crimes are classified as low threats from money laundering activities: •  6  Sexual Exploitation  BIS central bankers’ speeches  •  Arms Trafficking  •  Counterfeiting and piracy of products  •  Insider Trading and Market Manipulation  •  Murder  •  Environmental Crimes  •  Extortion  •  Kidnapping  •  Sea Piracy  Terrorism Financing threat is classified as medium risk taking into consideration the following factors: •  Insignificant number of terrorism and terrorism financing incidents in Malaysia  •  Primary groups (such as Jemaah Islamiah (JI) and Kumpulan Mujahidin Malaysia (KMM) have been dismantled)  •  Evidences so far indicate self-financing by individual terrorist.