Welcoming Remarks by Mr Affendi Rashdi, Director-General of Labuan FSA at Labuan International Compliance Conference 2025 Theme : From Rules to Values, Shaping Compliance to Confidence
Labuan International Compliance Conference 2025
Theme: “From Rules to Values, Shaping Compliance to Confidence.”
Opening Speech By
Affendi Rashdi
Director General
27 November 2025
Labuan International School
Chairmen of Industry Associations,
Labuan IBFC business community,
Distinguished guests and participants,
Members of the Media,
Ladies and Gentlemen,
1. A very good morning to all. It is my pleasure to welcome you to the ‘Labuan International Compliance Conference 2025’, or ‘LICC 2025’- It serves as the inaugural and unique event jointly organised by Industry Compliance Officer Network (CONGs), UMS and Labuan FSA. This blend of regulators, compliance practitioners and academicians should be very insightful for us all especially discussions on AML/CFT fundamentals and challenges facing compliance officers. Here I’m expecting colourful sharing by panellists and speakers on regulator’s expectations, supervisory insights; and industry’s practical issues in the light of new AML/CFT regulations. In fact, this is timely as FATF had concluded its Mutual Evaluation on Malaysia and Labuan just recently at end-October – so a reflection of the findings would be shared with you on areas for us to improve on.
2. The financial industry is evolving at an unprecedented pace, propelled by digitalisation that redefining how institutions operate, serve clients and conduct business. These advancements offer immense value to both private and public sectors. However, they also create new vulnerabilities – vulnerabilities that criminals are quick to exploit by targeting gaps in regulations, compliance and operational processes. Amidst this shift, regulations and regulatory expectations continue to intensify rapidly within an increasingly interconnected global market. As a result, compliance has moved beyond a mere legal obligation; it has become a central pillar of responsible governance. Upholding integrity, transparency, and trust is no longer an option - it is fundamental to the credibility and resilience of every Reporting Institution represented here today.
3. Against this backdrop, our vigilance and collective action become more indispensable. Compliance remains central to deterring, preventing, and addressing financial crime, especially money laundering. While regulatory demands may at times be seen as operational constraints, their value is undeniable. As a regulator, Labuan FSA recognises that effective compliance not only enhances oversight and market transparency but also enables quicker, informed response to emerging risks. This is what ultimately sustains confidence in Labuan IBFC as a safe and credible financial business centre.
4. For Reporting Institutions, your role as the first line of defence is important. The financial industry as an efficient ecosystem that channels resources where they are needed. But this interconnectedness also presents risks – where a single weak point can compromise the integrity of the entire network. This is why financial institutions carries a critical responsibility as market frontliners, detecting and ensuring criminals cannot exploit the “Achilles’ Heel” within our system. By fulfilling your obligations under the regulations and requirements, you are not only safeguarding your own institutions, but you are also helping to prevent illicit activities from infiltrating Labuan IBFC’s financial system.
Ladies and Gentlemen,
5. For decades, compliance was seen as a checklist-ticking exercise mere rules to follow rather than strategic function. But with the rising complexity of financial crime risks, the rapid growth of technologies such as AI, virtual assets and social media platforms; and the increasing volume of cross-border transactions, the fight against financial crimes has become more challenging. In this context, strong international cooperation is key. In short, information sharing, innovation, and technology-driven compliance are the pillars of a robust AML regime and for Labuan IBFC to be a trusted financial market.
6. Over the years, Labuan IBFC has consistently strengthened its regulatory framework - enhancing legal and prudential standards, market conduct, and digital regulations. As a regulator, Labuan FSA too is keeping pace with technology – we’ve also begun to adopt SupTech-innovations to enhance our supervision. This when fully completed would allow more effective and risk-focused market surveillance with greater granularity and efficiency.
Ladies and Gentlemen,
Labuan IBFC business community,
Distinguished guests and participants,
Members of the Media,
Ladies and Gentlemen,
1. A very good morning to all. It is my pleasure to welcome you to the ‘Labuan International Compliance Conference 2025’, or ‘LICC 2025’- It serves as the inaugural and unique event jointly organised by Industry Compliance Officer Network (CONGs), UMS and Labuan FSA. This blend of regulators, compliance practitioners and academicians should be very insightful for us all especially discussions on AML/CFT fundamentals and challenges facing compliance officers. Here I’m expecting colourful sharing by panellists and speakers on regulator’s expectations, supervisory insights; and industry’s practical issues in the light of new AML/CFT regulations. In fact, this is timely as FATF had concluded its Mutual Evaluation on Malaysia and Labuan just recently at end-October – so a reflection of the findings would be shared with you on areas for us to improve on.
2. The financial industry is evolving at an unprecedented pace, propelled by digitalisation that redefining how institutions operate, serve clients and conduct business. These advancements offer immense value to both private and public sectors. However, they also create new vulnerabilities – vulnerabilities that criminals are quick to exploit by targeting gaps in regulations, compliance and operational processes. Amidst this shift, regulations and regulatory expectations continue to intensify rapidly within an increasingly interconnected global market. As a result, compliance has moved beyond a mere legal obligation; it has become a central pillar of responsible governance. Upholding integrity, transparency, and trust is no longer an option - it is fundamental to the credibility and resilience of every Reporting Institution represented here today.
3. Against this backdrop, our vigilance and collective action become more indispensable. Compliance remains central to deterring, preventing, and addressing financial crime, especially money laundering. While regulatory demands may at times be seen as operational constraints, their value is undeniable. As a regulator, Labuan FSA recognises that effective compliance not only enhances oversight and market transparency but also enables quicker, informed response to emerging risks. This is what ultimately sustains confidence in Labuan IBFC as a safe and credible financial business centre.
4. For Reporting Institutions, your role as the first line of defence is important. The financial industry as an efficient ecosystem that channels resources where they are needed. But this interconnectedness also presents risks – where a single weak point can compromise the integrity of the entire network. This is why financial institutions carries a critical responsibility as market frontliners, detecting and ensuring criminals cannot exploit the “Achilles’ Heel” within our system. By fulfilling your obligations under the regulations and requirements, you are not only safeguarding your own institutions, but you are also helping to prevent illicit activities from infiltrating Labuan IBFC’s financial system.
Ladies and Gentlemen,
5. For decades, compliance was seen as a checklist-ticking exercise mere rules to follow rather than strategic function. But with the rising complexity of financial crime risks, the rapid growth of technologies such as AI, virtual assets and social media platforms; and the increasing volume of cross-border transactions, the fight against financial crimes has become more challenging. In this context, strong international cooperation is key. In short, information sharing, innovation, and technology-driven compliance are the pillars of a robust AML regime and for Labuan IBFC to be a trusted financial market.
6. Over the years, Labuan IBFC has consistently strengthened its regulatory framework - enhancing legal and prudential standards, market conduct, and digital regulations. As a regulator, Labuan FSA too is keeping pace with technology – we’ve also begun to adopt SupTech-innovations to enhance our supervision. This when fully completed would allow more effective and risk-focused market surveillance with greater granularity and efficiency.
Ladies and Gentlemen,
7. Another key point I would like to emphasise here is capacity building. It is essential for Reporting Institutions to continually enhance the capabilities of their staff. Training and development should not be viewed as a wasteful cost, but as a strategic investment. It helps sustain current business operation and prepare for the future by deepening understanding of compliance obligations, strengthening internal governance, and keeping pace with evolving regulatory standards that affect the Reporting Institution.
8. Equally important, compliance tone starts from the top. Senior management and the Board must remain vigilant on governance, leadership, and risk management of their organisation. Any compliance deviations or emerging risk should be fully understood and addressed promptly to ensure their organisation and business remain well within the parameters of Labuan IBFC’s laws and regulations.
9. On this note, I would like to commend UMS-KAL for their effort in developing the Macro-Credential Programme on ‘Introduction to AML/CFT’. This initiative is an important step in enhancing our understanding of compliance. The programme will cover fundamentals core principles of AML/CFT, including the legal framework, Know Your Customer (KYC) procedures, and Customer Due Diligence (CDD) requirements. In this regard, I strongly urge Reporting Institutions to make upskilling of staff a key priority - particularly Compliance Officers, who play a pivotal role in ensuring your organisation’s compliance and institutional integrity always remain intact.
Ladies and Gentlemen,
10. For the next few hours, you will be enlightened by experts sharing their insights on key topics ranging from KYC and STR fundamentals to more contemporary themes such as RegTech innovations, and FATF evaluations. As I mentioned earlier, with FATF’s recent plenary conclusion, these discussions are both timely and essential. I am confident this conference will provide valuable takeaways to help further strengthen compliance in your organisation.
11. Before I conclude, I would like to thank our partners, LB-CONG, UMS-KAL, Bank Negara Malaysia, distinguished speakers, as well as Labuan FSA officers and Labuan International School for making this inaugural event possible. Your collective commitment and presence here reflect a shared conviction: that compliance is not a burden, but a bridge to building confidence, credibility, and a resilient financial future.
12. The stage is set. The minds are gathered. The mission is clear. With great honour, I declare the First ‘Labuan International Compliance Conference 2025’ officially launched.
13. With that, I wish you all a productive conference ahead.
Thank you.
8. Equally important, compliance tone starts from the top. Senior management and the Board must remain vigilant on governance, leadership, and risk management of their organisation. Any compliance deviations or emerging risk should be fully understood and addressed promptly to ensure their organisation and business remain well within the parameters of Labuan IBFC’s laws and regulations.
9. On this note, I would like to commend UMS-KAL for their effort in developing the Macro-Credential Programme on ‘Introduction to AML/CFT’. This initiative is an important step in enhancing our understanding of compliance. The programme will cover fundamentals core principles of AML/CFT, including the legal framework, Know Your Customer (KYC) procedures, and Customer Due Diligence (CDD) requirements. In this regard, I strongly urge Reporting Institutions to make upskilling of staff a key priority - particularly Compliance Officers, who play a pivotal role in ensuring your organisation’s compliance and institutional integrity always remain intact.
Ladies and Gentlemen,
10. For the next few hours, you will be enlightened by experts sharing their insights on key topics ranging from KYC and STR fundamentals to more contemporary themes such as RegTech innovations, and FATF evaluations. As I mentioned earlier, with FATF’s recent plenary conclusion, these discussions are both timely and essential. I am confident this conference will provide valuable takeaways to help further strengthen compliance in your organisation.
11. Before I conclude, I would like to thank our partners, LB-CONG, UMS-KAL, Bank Negara Malaysia, distinguished speakers, as well as Labuan FSA officers and Labuan International School for making this inaugural event possible. Your collective commitment and presence here reflect a shared conviction: that compliance is not a burden, but a bridge to building confidence, credibility, and a resilient financial future.
12. The stage is set. The minds are gathered. The mission is clear. With great honour, I declare the First ‘Labuan International Compliance Conference 2025’ officially launched.
13. With that, I wish you all a productive conference ahead.
Thank you.
Mr Affendi Rashdi
Director-General, Labuan FSA
