KUALA LUMPUR – The 12th International Conference on Financial Crime and Terrorism Financing (IFCTF) 2022 saw Bank Negara Malaysia’s (BNM) governor talk about the ringgit’s status and the impact of financial crimes towards the country’s economy.
Tan Sri Nor Shamsiah, during her keynote speech, said that Malaysia’s ringgit is maintaining stability against the country’s major trading partners and that Malaysia’s nominal effective exchange rate recorded a small decline of 0.1%.
According to Bernama, she explained that due to the dollar index experiencing an increase by 11.5% this year, the highest in over twenty years, most regional currencies depreciated against the greenback. This includes the ringgit.
Seeing as the country’s economy is recovering well, she said BNM will continue to utilise the tools they have in order to ensure the ringgit’s movement is orderly while the US Federal Reserves maintain their aggressive monetary policy tightening position.
Furthermore, she stated that it was crucial for Malaysia to strengthen its resistance to face future crises and maximise the nation’s full potential.
“We must address long-term risks and build our resilience against future shocks while also attracting quality investment, expanding economic complexity, and creating quality jobs for Malaysia,” she continued.
Financial crimes impacting economic prospects
When touching on the topic of financial crime and terrorism financing, Nor Shamsiah stated that the number of financial crimes rose significantly over the pandemic period as the criminals took advantage of the conditions that were related to the economic downturn.
“These financial crimes have a direct and significant impact on the country’s economic prospects and we are now at a new frontier of compliance. The fight against financial crime is waged on several fronts and the strength of the chain depends on its weakest link.
“Our success requires that all parties, including the private sector, regulators, law enforcement agencies, and other government bodies, as well as consumers, do their part and adapt to these new threats, transform themselves to meet these challenges, and work together to protect the integrity of our nation’s financial system,” she said.
The two-day IFCTF 2022 event focused on the critical role of the financial sector in reshaping its defence and mitigation measures in the fight against financial crime and terrorism financing, particularly in the era of COVID-19, where reliance on financial technology grows in tandem with the appearance of new digital and environmental crimes.
The event is organised by the Asian Institute of Chartered Bankers and its Compliance Officers’ Networking Group, with the support of BNM, the Securities Commission Malaysia, and the Labuan Financial Services Authority.
More than 50 global financial leaders and industry experts from all over Europe, the US and Asia Pacific participated in this conference this year with the theme of “The New Frontier of Compliance: Adapt, Transform, Collaborate.”
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