For this, the use of internet banking, e-money, remittance platform and other use of internet technologies for money laundering activities are on the rise. New  2  BIS Review 46/2009  technologies are also being used to perpetrate crimes such as dealing in illegal drugs over the internet and e-crimes, including phishing and internet auction frauds; 3. There are also instances on the use of dummies, or an international network of shell companies as well as other intermediaries to handle the transactions; and  4. The use of electronic fund transfers as one of the preferred methods for the layering of criminal proceeds once they enter the legitimate financial system. There are cases where these proceeds are smuggled out of one country, deposited in another country or other countries, and then wired back to the country of origin. III. Strategic focus to strengthen the national AML/CFT regime  As the challenges to address the emerging trends intensify, it becomes imperative that the overarching objective upon which an AML/CFT regime has been built remains intact and achievable. The key is to sustain the robustness of the AML/CFT regime to effectively deter and detect money laundering and terrorism financing offences. Thus the third and the last theme of my speech is on Malaysia's strategic focus in strengthening the national AML/CFT regime. Against this backdrop, five key areas has been identified. First is to strengthen collaboration and cooperation among key stakeholders. Foremost is to enhance the public-private sector partnership as synchronised actions deliver better result.
Financial institutions must be well-managed. Governance structures need to be in place to establish the appropriate decision-making processes, behaviors and incentives within these organizations. •  And, third, complexity. Financial institutions must become less complex. This objective speaks to the need to reduce the level of interconnectedness among large financial firms and to ensure that there are credible mechanisms for resolving even the largest firms without causing systemic disruption across the financial system. BIS central bankers’ speeches  1  Resiliency Much has been said about the U.S. and international set of regulatory reforms aimed at making global banking organizations more resilient – particularly in the areas of capital and liquidity. The importance of robust capital requirements for financial stability and the serious shortcomings of the pre-crisis regulatory capital regime have been well documented. A lot of work has been done on the capital front through a range of both domestic and international efforts. These efforts have addressed – in most cases – both the quantitative and qualitative elements of capital, and have also addressed the important management processes around capital. The Basel standards – and resulting U.S. regulation – address both the quantity and quality of capital and raise the bar on both elements for large firms. As well, the new capital rules will also require a capital buffer that increases with a firm’s size, complexity, interconnectedness and global footprint. Implementation of these new standards should significantly increase the safety and soundness of the financial system.