The revised policies also aimed to address implementation issues faced by both the reporting institutions and the supervisors as well as to incorporate FATF requirements under the revised standards. To ensure consistency of AML/CFT policies across the sectors, the revision was carried out jointly with other financial supervisors such as the Labuan Financial Services Authority and the Securities Commission. Extensive consultations and engagements were undertaken with the industry players both during pre and post issuance of the policies. The consultations provided a broad range of opinions and support. Whilst majority of responses were supporting a risk-based approach, concerns were also raised on the cost and burden of compliance. Bank Negara Malaysia recognises that the cost of implementing the Customer Due Diligence under the risk-based approach may be high at the early stage of implementation but the establishment of robust risk framework that commensurate with the risks of your institutions will minimise the institutions’ reputational risk and would also lower the overall costs in the long-run given the ability for reporting institutions to focus resources to the right area. Governance and risk culture Let’s now turn to governance and risk culture. Governance refers to actions, process, traditions and institutions by which authority is exercised and decision are taken and implemented. A good governance is, therefore, a mixture of legislation, non-legislative codes, self-regulation and best practices, structure, culture and management and board competency. If we take a step back and reflect, we will notice that risk governance is woven through the risk management framework.
Encik Abu Hassan Alshari Yahaya: Financial crime and terrorism financing Keynote address by Mr Encik Abu Hassan Alshari Yahaya, Assistant Governor of the Central Bank of Malaysia, at the 5th International Conference on Financial Crime and Terrorism Financing (IFCTF 2013), Kuala Lumpur, 23 October 2013. *  *  *  It is a great pleasure for me to be here today and I would like to thank the Conference Organiser, the Asian Institute of Finance in collaboration with the Malaysia’s Compliance Officers’ Networking Group, for the invitation to deliver the keynote address at this 5th International Conference on Financial Crime and Terrorism Financing. I am happy to note that this annual conference has received strong response and continued to provide industry players with the developments in the area of financial crimes and terrorism financing and how financial service providers and relevant businesses and professions could continuously strengthen the capacity and capabilities in addressing these risks. I am glad to note that there has been an increased participation from the designated nonfinancial businesses and professions (DNFBPs) in this year’s conference. This reflects heightened awareness and seriousness by the DNFBPs to improve their compliance and understanding of their roles in combating money laundering and terrorism financing. I am also informed by the organisers that the Malaysian Bar Council, the Malaysian Institute of Accountants and the Association of Money Services Business have also reached out to their members to attend this and by accrediting this program as part of the continuous professional development.