 Good morning, ladies and gentlemen. Good afternoon, good evening, whichever part of the world you are. Welcome to the Central Bank of the Future Conference. I am Sachin Shah, I'm going to present my schedule paper on fostering financial inclusion by Enhance KMLK Basi regimes using the star model. The star model is basically, you know, thought process from my end, which I think I'm going to share with you all in the coming few slides. Basically, on giving a brief about myself, I'm a compliance professional with close to 20 years of experience. I'm a subject matter enthusiast as well as the financial crime compliance domain is concerned. I have various global publications in my name, and I love to write, you know, as far as the financial crime space is concerned. And on my topic, which I'm going to present today is basically on the fostering of financial inclusion, and I'm going to propose or share the model, you know, which I have come out on my own. So, coming on the brief agenda of this section, I'm going to cover briefly about the financial inclusion, you know, a very brief about the global perspective or financial inclusion, what's the definition and all that. After that, I move on to the very complicated and intricate nexus between the financial inclusion and the MLK Basi regimes. I think it's very, very important for all of us, you know, to correlate and to understand how the MLK Basi regimes are related to the financial inclusion. I'll then move on to the current regimes of globally, you know, and how they're promoting the financial inclusion. That and the challenges which we are facing, I will then take you through the star model, you know, which I have proposed in my academic paper. And again, thanks to the University of Michigan and the Federal Reserve Bank of San Francisco to give me an opportunity to share my model, and then I'll wrap up my session by sharing the key takeaways, you know, on my thoughts on the financial inclusion. So yes, in terms of summarizing or giving you executive summary. So as we all know that economic prosperity and financial inclusion, you know, go hand in hand. Financial inclusion is the focus area for all the governments and global regulators across the globe. We can understand and the statistics basically support the fact that as on date the global GDP is close to 90 trillion US dollars and the global banking sector contributes close to $8 trillion, you know, to the global GDP. So we can understand, you know, how the global banking sector plays a pivotal role in the economic prosperity and how, you know, it impacts the financial inclusion. Definitely, in terms of economic disparity, they're the top one person of the richest owns nearly half of the world's, you know, which, which, which is a cause of concern, okay, and these are certain things which are ready to financial inclusion. And this is what I'm going to cover up in my subsequent slides. As we know that the global banking sector and the financial service sector, you know, are changing dramatically over the past few decades. Similarly, the financial inclusion is also getting the traction barring few challenges. There is lot which has been done in the past, definitely in the coming future also governments are taking various steps, but I think the star model which I propose, you know, will definitely help the governments and it basically aims to help the government and the regulators across the globe, you know, to enhance their efforts in terms of obtaining more financial inclusion. The star model basically there is an acronym of, you know, achieving safety and trust to improve email monitoring and behaving responsibly. So basically the focus area is safety, trust, email monitoring and behaving responsibly. In other terms, we can say that it's it's it's a model which tries to strike a balance between socialism and capitalism by increased accessibility and improved responsibility. So I think to address the issue of financial inclusion, you know, this paper aims to assist various governments, regulators and banking industry to adopt a futuristic approach in understanding and adopting the parameters of financial inclusion. If you go on to the next slide, you know, and try to have a deep dive on the financial inclusion in the current scenario, we'll understand, you know, that financial system plays a key role in achieving the global development and reducing income inequities. The increased penetration of financing system can help in poverty eradication by empowering the poorest of the poor financially. However, there are various challenges and the first and the foremost is, you know, how one defines financial inclusion, you know, there are divergent, you know, views about the financial inclusion. There are various perspectives, there are various ways in which an individual governments, regulators across the globe are viewing the concept of financial inclusion. However, if we zero in on, you know, few definitions by the World Bank and the FETF, we'll clearly see that, you know, financial inclusion in the most basic version is access to the basic banking. Okay, this is something in a very layman term. However, you know, to see things in a holistic way, that also includes a more holistic, you know, approach and definitely should cover other sectors of financial systems like credit and insurance. Definitely, this is very important. If we see the recent report by Citibank, you know, and the report is termed as global perspectives and solutions, which was released somewhere in 2020, the report notes that over a long period of time, financial inclusion discussion have indicated that the topic is narrowly understood at best by many parties. Common misperceptions suggest that financial inclusion is only relevant in frontier and emerging economies, or that it is only a problem for individuals. So I think one big problem is to understand the nuances of financial inclusion, to understand what exactly the financial inclusion is and what we are trying to, you know, approach at a global level. So I think when we talk about the financial inclusion, this slide basically shows you in a very crisp and short way that what the financial inclusion means in a holistic way. So basically, when we talk about financial inclusion, it not only includes individuals but it also includes all other businesses, you know, which involves making broader range of financial products and services available to individuals as well as to businesses. The other important point is on the accessibility and usefulness. So when we talk about financial inclusion, the accessibility and usefulness of the financial products is very, very important. We are not able to achieve these parameters. The concept of financial inclusion, you know, will not be that effective and fruitful. The third point which is important is the affordability, which is ensuring access to appropriate financial products and services at an affordable cost in a fair and transparent manner. So as we all will understand that when we talk about the concept of affordability, we somewhere attach a point of, you know, costing, you know, if the services offered by the financial institutions and banks are very costly. The cost of preparation for the common man, definitely it will not strike a, you know, repo with the public and definitely it will impact the effectiveness. So obviously when we talk about the financial inclusion, the affordability is very much important. And the last point is basically delivered in responsible and sustainable way. The banks and the financial institutions across the globe, you know, need to be mindful of the fact that when they, you know, cooperate with the governments across the globe in having more financial inclusion, they need to deliver the financial services and the products in a responsible and sustainable way. And this gives us a clarity as to, you know, what the financial inclusion is. And I think the regulators across the globe are circumventing their efforts, keeping in mind, you know, these key characteristics as far as financial inclusion is concerned. I will briefly touch upon this FATF guidance report which basically defined the financial inclusion. I think it strikes everyone in terms of the coverage when we try to define the financial inclusion. So it basically says, you know, that providing access to an adequate range of safe, convenient and affordable financial services to disadvantage and other vulnerable groups, including low income, rural and undocumented persons who have been undeserved or excluded from the financial sector. So I think FATF has beautifully defined the financial inclusion. They have tried to cover all the aspects which we have just as upon in our previous slide. So they talk about, you know, the safety, the convenience, the affordability, the target groups are the disadvantage and the vulnerable groups, you know, the low income, rural and undocumented. So obviously, you know, if our efforts on financial inclusion are channelized to target these vulnerable groups, definitely that will be more effective. So the next slide which basically will give us a snapshot on the current scenario as far as the financial inclusion is concerned. So we have come a long way as far as economic prosperity is concerned. But there are challenges, you know, the income inequality we all can, you know, see that, you know, day to day life. There's plenty of material in the public domain which supports this fact close to one third of adults, that is close to 1.7 billion of adults are still unbanked. About half of unbanked people include women who are from poor households in rural areas, or who are out of workforce. The gender gap in account ownership remains stuck at 9 percentage point in developing countries in bringing women from being able to effectively control their financial lives. Basically, the point which I'm trying to make is that although, you know, we have made progress in terms of economic growth and enhanced global GDP, however, there are pockets across the globe who are still, you know, way behind in terms of prosperity. These key statistics support the fact that they are really supposed to catch up with the remaining world in terms of eradicating the poverty and, you know, really making them financially more convenient and independent. In terms of country, Asia leads the world in terms of unbanked adults, followed by Africa in terms of absolute numbers, financial inclusion to other forms of financial services like borrowing savings products or insurance is also a pain point in several sections of society in emerging countries like Mexico, Peru and Bangladesh. So again, same point, which I just touched upon, that financial inclusion doesn't trust it only to the basic banking services, you know, it goes beyond the banking services, it covers the credit, you know, it covers the insurance sectors, and that is where, you know, it touches upon the lives of the most vulnerable sections of the society. So this is where, you know, our efforts has to be streamlined, you know. As we can see, 75% of the borrowings come from family sources, informal moneylenders or other sources. So if we see the global platform, you know, in terms of the lending facilities, okay, this is a very startling fact that 75% of borrowing still come from family sources or informal moneylenders or other sources. So this is an organized sector which still has a bigger pie of the share, you know, they still control, you know, a lot of people, you know, in terms of their dependency as far as the borrowings are concerned. And there's a cause of worry for all of us. Though we have the organized sector in terms of banks, you know, the moneylenders and various other institutions giving their services, but still there is a lot to cover up, you know, in terms of including the vulnerable section of the societies, you know, under our ambitank to increase the financial inclusion, the gaps resulting to economic growth, which is non-inclusive and also impacts the savings and consumption cycle. So obviously, when there is so much inequality, you know, in terms of income distribution, obviously, you know, that results into economic growth, which is non-inclusive, and which also impacts the savings and consumption cycle. So we have seen in ample number of instances, you know, in the past, you know, where we have clear instances where the savings and consumption cycles have been so disruptive, you know, that it really impacted the economic growth in big way. Focus on financial inclusion helps people escape poverty by facilitating investments in their health education and businesses. So as we just mentioned, you know, why financial inclusion is involved is important. It is important, you know, to assist people, you know, people who belong to the vulnerable class, you know, who are not that lucky to access the normal banking or other financial institutions, you know, to escape poverty, and how institutions help them. They help them by facilitating investments in their health education and business and so on and so forth. It also makes it easier to manage financial emergencies such as job loss or crop failure that can push families into distribution. So we need to understand, you know, that though the financial services still contribute the major chunk of the global GDP, but we have people who are involved into daily wage jobs, who are into agriculture, and they are very much dependent upon the vagaries of the climate. So basically, in case of any eventuality, if we have a good financial inclusion, definitely that will save them, you know, in terms of financial emergencies, as we just mentioned in case of job loss or crop failures. I think the culmination of all these efforts, you know, to have increased financial inclusion was attained in the United Nations Sustainable Development Goals. So this thing was been deliberated, was been discussed for quite a big number of time, but I think the United Nations Sustainable Development Goals really do, you know, our efforts at a global level, you know, to have more financial inclusion. In terms of various sustainable development goals, there are seven goals which are very important to be mentioned over here. So we have the first goal which is on eradicating poverty. The second goal is on ending hunger and achieving food security. The third goal is on profiting health and well-being. The fifth goal is basically on achieving gender equality. The eighth goal is on promoting economic growth and jobs. The ninth goal is on supporting industry innovation infrastructure and 10th goal is on reducing inequality. So out of the whole gamut of the United Nations Sustainable Development Goals, I think these seven goals, you know, proves and demonstrates the efforts which have been taken by the global community to have more financial inclusion and the steps which have been taken over a period of time. So yeah, this is what is a very brief about the current scenario. Now we'll try to see that how the financial inclusion and the AML-KVSE regimes are interlinked. So as we have discussed a while back, you know, that the global banking system contributes a substantial chunk of the global GDP. And the way the efforts have been taken, you know, to have more financial inclusion, it is expected that there will be unprecedented growth in financial inclusions. And by 2022 an additional 700 to 800 million edits will be included in the formal financial system, leaving just 15% of the global population unbanked down from 49%. So I think we have seen the efforts which have been taken by governments across the globe, countries across the globe are taking big steps in terms of attaining more financial inclusion. And I think we'll definitely see the results in the coming few years when the number of people who are out of the formal financial system will drastically come down. In terms of the main four pillars, you know, of the financial inclusion, I think these are excess affordability, utility and legality. I think we have discussed this when we are discussing the definition of financial inclusion when we just touched upon how the FITF and World Bank has tried to define the financial inclusion. So I think when the governments across the globe are taking initiatives, these key four pillars are very, very important and in every approach, you know, these four pillars has to be considered to make it more effective. However, there are challenges in terms of attaining financial inclusion. There are been efforts made by the regulators. There have been efforts made by the government, but still we have challenges. So what are those challenges? These challenges are lack of insufficient funds. We have stringent and documented requirements for our willing services. We have perceived cost of banking, distance and trust is another example. So what we really mean when we say lack of insufficient funds. So we need to understand, you know, that there are still many countries who are really falling short of the budgets, which makes them very, very difficult to have a national program or agenda on having a financial inclusion. You know, there are insufficient funds. There can be many reasons for that, but the bottom line is that they don't have funds, you know, maybe their priorities are different. That is why they are not able to focus on that and hence they are not able to allocate the required budgets. Another thing is the stringent documentary requirements for availing services. I think over a period of time, the way regulators across the globe has come up and frame the regulatory and the legal regimes in terms of AML KYC. You know, it has become a big push and pull sort of, you know, tug war between the regulators and the, you know, financial institutions, you know, because of the fear of penalties and various other, you know, reasons. Financial institutions are very, very cautious when the documented requirements are concerned. So they are still very, very stringent in a lot of countries. There are countries, you know, who have made an effort to relax their documented requirements, which we'll see in the subsequent slides. But there are still a lot of countries in the, in the world, you know, who really need to, you know, work on making the documented requirements more simplified. The other reasons are perceived cost of banking. Obviously, the way economy has grown, you know, things are shaping up the way sophistication is coming up. The cost of banking is increasing day by day. So obviously, the financial institutions are very mindful of the cost benefit analysis and somewhere that is one of the different, you know, to really push the concept of financial inclusion from there and although governments and regulators really push them frame the go frame the national policies, but you know, this is one thing which stops them in pushing the, you know, achieving the financial inclusion big time, then obviously distances and trust. So we need to understand, you know, that still there are a lot of people who are, you know, residing in the rural areas, you know, the formal financial system is still restricted only to the major cities of the world. You know, still there is a lot of work to be done, you know, to make these services available in the rural areas. There are organizations who have really worked upon it. We have examples in front of us, you know, various countries have taken a step in terms of making these services available in the rural areas, but still there is a lot to be done in the coming future. So just to support what we mentioned, so countries are realizing these challenges regulators and the leaders bodies are realizing these challenges. And they have taken steps with the help of regulators, legislative measures and financial sector reforms have been initiated in some countries. So we have few countries, for example, United States, which basically came up with their Community Reinvestment Act in 1997, which requires banks to offer credit throughout their entire area of operation and prohibits them from targeting only the rich neighborhoods. So this is one effort which is done in United States. In France, if you take the example, the law of the law on exclusion in 1998 emphasizes an individual's right to have a bank account in Malaysia. Again, you know, we can't compare a country like Malaysia vis-à-vis a country like United States and France, but obviously when we talk about the financial inclusion, you know, countries are taking steps shoulder to shoulder. Again, Malaysia is one of the country which really made the concept of financial inclusion as one of their objective, you know, in terms of financial inclusion legislations. Back to the African continent, the Federal Bank of Nigeria, basically came up with their microfinance policy in 2005. In 2005, we basically targeted bringing banking services at affordable cost to the doorsteps of the low income group. Similarly, countries like Senegal, Ghana, the Gambia, Mali, Burkina Faso, and even the post-conflict economies of Liberia and Sierra Leone have undertaken financial sector reforms designed to promote the integration of the financial sector with the formal. India definitely needs to mentioned about that, you know, they came up with some very good products in terms of no-fills accounts and, you know, general credit cards for low deposit and credits. So this shows the commitment of governments and the countries to have more financial inclusion. They are taking steps to achieve that they have taken various measures as we have just seen. So I think we'll move on to the next stage that what exactly are the challenges, you know, which the financial institutions across the globe are, you know, facing when they are trying to achieve more financial inclusion. So I think one of the biggest challenges is the increased cases of synthetic identity frauds, the economic crimes, cyber crimes, which has demonstrated clearly that the vulnerability of the financial sector to the vagaries of financial crimes. We need to understand that the economic prosperity and the financial crime goes handy and, okay, on one hand, you know, we have sophisticated technologies, we have new avenues to deliver the financial services to deliver the financial products at the same time criminals are also coming up big time, and they are coming out, you know, with new and innovative ways of committing the crimes. And this has a big impact. Okay, so when a vulnerable section of the society is impacted by the synthetic identity frauds or economic crimes or cyber crimes, there is one big concern and it impacts the financial inclusion effectiveness in big time, you know, which all the countries and governments need to really focus on. The other challenges the lack of financial inclusion, especially limited access to financial services, the use of informal channels, the prevalence of large informal service providers, among others present difficulties in tracing and monitoring transactions and that leads to a weaker AML CFD regime. So I think earlier in one of the slides we mentioned that there is still an informal system, you know, which is running parallel with the formal system. We have traditional money lenders, you know, who are having a big penetration as far as the population is concerned, the trust level is very high. So because of this parallel economy, because of the unordinary sector, you know, which is having a bigger chunk of the share, okay, it is very, very difficult, you know, to trace and monitor the transactions if something is not going in a expected way. Now the third point is very imperative to understand except the fact that AML CFD standards promote financial sector integrity and soundness and support the fight against crime. So I think somewhere governments and countries still need to come up the curve as far as the understanding and accepting the fact that AML CFD standards can really help them to promote financial sector integrity. There is a very important requirement, you know, for majority of the governments, you know, to understand how the AML CFD standards, you know, can really promote financial sector, you know, integrity, to have more financial inclusion in the appropriate implementation of these standards, especially in developing countries has been identified as one of the several factors for excluding almost half of the world population from formal financial services. So I think in one of the reports somewhere it is mentioned that if the AML CFD policies at a national level are not being, you know, devised or formulated and implemented appropriately it has a negative consequence on the objective of attaining, you know, more financial inclusion. Again, poorly designed AML CFD controls have the tendency to deny the answer. Majority access to the formal financial services undermined social economic advancements and reduce regulatory and law enforcement capacity are key means of strengthening integrity. So exactly the same point. If the unordinated sector has a major say, you know, in terms of offering the services, there are the AML CFD standards, obviously, you know, it invites the criminals to overpower you know, and penetrate the population a bigger way. And this really poses significant challenges for the government and the law enforcement agencies to really push the concept of financial inclusion because obviously the criminals and the various type of, you know, crimes will take a toll on their efforts. But definitely that is not the deterrent governments, countries are really committed to have more financial inclusion. And I would like to share a few of the countries, you know, which have really taken very disruptive and innovative steps as far as promoting the financial inclusion. So I think one of the key standards, you know, is to simplify the customer customer requirements, how the customer diligence has been undertaken, you know, how it has been customized for special transactions, products or financial services. So I think if we have, you know, very mindful policies, very simplified policies, very innovative policies, keeping in mind the concept of financial inclusion, I think that will go a long way, you know, in attaining our objective. The current AML KSC regimes also supports a new financial services model and the new products, you know, like, like mobile money and e-wallets. So I think we just discussed this that with the increased use of technologies with the innovative products, definitely the regulators across the globe are also catching up with the regulatory framework as to how we can ensure to support these innovative financial products and at the same time, we also achieve greater financial inclusion. One of the examples is Central Bank of Mexico is a classic example, which rolled out RTG system, you know, which allows banks to open accounts with only a smartphone so that customers do not have to visit a physical branch. We have India, again a classic example where they launch the unique identity system, which is a biometric verification system, and today they have covered almost 99% of the India's population. And that really made the financial inclusion a big national agenda. Again, in Brazil, the product, the Brazil Brazil, which is a no free checking account for learning the group which was introduced in 2007. Similarly, India also introduced the Janda news now which was a no free savings bank accounts. We have Indonesia, who have introduced a KFC approvals for new bank accounts without requiring face to face meetings, that is why I have mobile camera and all that. Pakistan is a country, you know, which introduced tax intensive tax incentives were announced in 2019 budget for banks doing incremental lending to SMEs. We have Philippines will have introduced the national idea system to open bank accounts. So we have a whole gamut of countries, you know, who have taken major steps to achieve the major footprint in terms of having more financial inclusion. However, at the same time, there are still major pain points in terms of attaining financial inclusion. So these are lack of trust as we have seen that the online sector still captures the bigger market share in terms of offering the financial services. We have countries who don't have, you know, the national identification infrastructure. We have countries where regulators are grappling up with the concept of identity documents, especially in the concept of refugees and asylum seekers. These are, you know, few things which are coming up at the global level. Okay, so there is a mass migration, the number of refugees are increasing in some countries, there are asylum seekers, so governments are really pondering big time as to what kind of community documents can be really come up for, you know, making these people under the ambit of financial services and make the financial inclusion more effective. Definitely, and not to mention lack of resources to implement AML safety monitoring program is another challenge. So obviously government is doing its effort at the same time. The institutions, the public private partnership, you know, who are making efforts to have proper controls to monitor the main wanting and the country for terrace financing activities, but they are facing challenges in terms of the required resources in terms of financials as well as a human resources. So again, considering the pain points, which I just discussed, these are basically the foundation of my star model, which, which in my view is going to be very, very important. So it focuses on few key concepts, you know, which basically are, are derived through the pain point which we are just seeing. So safety is one thing, trust is another thing, then we have AML monitoring and obviously the last one is being responsible. So I will go on to, you know, explaining what the model exactly is. So this model basically, you know, makes an attempt, you know, to come out with some key takeaways with the government and regulators across the globe can really follow, you know, to have financial inclusion by attaining safety by having more trust of the public, you know, by having incentivization for the contribution to financial inclusion by having effective AML monitoring systems and obviously is behaving responsibly. So, on your left hand side, these are the key points which talks about create an enhanced public trust in financial service sector, develop and improve national ID infrastructure, regulatory relaxation, the AML-KVSE process and framework, incentivization to contribute in financial inclusion, cost effective AML systems and subsidization, enhancing framework for mitigating cyber fraud and synthetic identity thefts, enhanced level of public-private partnership. So I think the key focus or objective of this star model is to really emphasize on the four pillars, you know, which is safety, trust, AML monitoring and behaving responsibly. I think if we all work in attaining these four pillars, I think that will definitely help us out, you know, to give a push to our efforts in having more financial inclusion. These are, you know, very brief about the seven point agenda of the star model which is proposed by me. So when we talk about creating an enhancing public trust in financial service sector, you know, what I mean to say is that, you know, we need to really push the unornized sector and see that why the unornized sector is still a preferred option for the mass. Okay, unless and until we don't think about that thing, we won't be able to push the financial inclusion. There are advantages which have been offered by the unornized sector. However, there are advantages of the formal financial system which we really need to push very hard, you know, we need to promote that, you know, we need to really market that thing and, you know, gain the trust of the public. As per the Consumer Sentinel Network, maintained by the Federal Trade Commission, there were 3 million entity in frauds reports in 2018. So I think this also is playing a very, very crucial role. Okay, on one hand, we are trying to promote the financial inclusion. On the other hand, you know, the increasing criminal activities are taking a toll on the finances and savings of the general public. So unless and until we strike a balance, you know, we try to somehow come out with the relevant laws and regulations which, you know, in a way make things more faster, you know, it makes things more expedited. That is where, you know, we will be able to have more trust of the public and once we have more trust of the public, we will be able to have more deeper penetration of the financial services and products and that way it will help us out to attain more financial inclusion. The second point is, you know, to develop an improved national ID infrastructure. So I think somewhere in the past slides, we have seen that there are countries who have really worked hard and implemented the national ID infrastructure. For example, India is one country where, you know, they launch the unique other identification number, you know, which is a biometric identity cards. This has really become a game changer as far as the Indian economy is concerned. Government was able to achieve a lot of their, you know, objectives in terms of reaching out to the poor, eradicating poverty, you know, by simply following the national ID infrastructure. I think countries which do not have the wherewithal, you know, or they are facing challenges in having a improved national ID infrastructure. I think they can look upon the strategy and approach which is being followed by countries like India and they can really go ahead and try to implement that. And believe me, it has its own advantages. India is a classic example. Nothing to hide about that. There's plenty of material, you know, in the public domain which, you know, supports that fact. The third thing which is important is the regulatory legislation in the AML QLC process and the framework. So I think we touched upon this fact, you know, that when regulatory framework comes into the play, the requirements are still very, very changing, you know, clients, you know, or the general public when they try to avail the financial services, they have to go to the barrage of, you know, documentational procedures to some extent which discourages them. I think this is the point where the unorganized sector, you know, leverages and try to penetrate by having very less requirements and offering their products. And I think supporting regulatory changes like simplified due diligence, you know, will really help out the countries in going along as far as financial inclusion is concerned. Colombia, Egypt, or Honduras and India are some countries which have implemented the STD regulations, keeping in mind unbanked and the poor section of the society. So again, the regulatory relaxations in terms of the AML QLC process and framework will go a long way in achieving our objective of having greater financial inclusion. Incentivation to contribute in financial inclusion. This is very interesting, you know, which I would like to share with you. I think we need to see that the financial institutions and banks across the countries and across the globe are there to make profits. And when they do a cost-benefit analysis, somewhere, you know, that deters them, you know, to push the larger picture of having more financial inclusion. Okay, so governments must realize that financial institutions are assisting the initiatives on financial inclusion in all the ways and also incurring huge cost to create and build the systems of products around it. At the same time, due to this cost-benefit analysis, a lot of financial institutions are hesitant to stress themselves and increase either their network or product studies, the poorest of the poor of the society. So I think I gave you a classic example, you know, which I confronted a few years back. So basically, we have one of the largest private sector banks, you know, in India. And they were opening the accounts for the deprived section of the societies. So in one of the branches, you know, one of the RM basically called up the branch manager and said that we have some 50 odd account opening forms with us, and we will not be able to proceed because they are not mentioned that, you know, what is their source of funds and what is their source of income. So basically, when the concerned persons from the bank really went deep into that case, they noticed that all these 50 people were the beggars, you know, they were staying on the streets, you know, but still doing their best to be involved in the larger ecosystem of the financial institutions. But I think the way banks are apprehensive of the regulations, obviously, you know, they are apprehensive of opening these accounts. So the point is, you know, we need to really focus on incentivizing the financial institutions in contributing financial inclusion. This impacts the government initiatives to attain the deeper financial inclusion. However, it's high time government incentivizes the financial institutions to promote the financial inclusion. And as I mentioned, one such way is to offer some kind of tax department incentives to the financial institutions, so that the increased cost of operations or compliance can be really absorb. So I think we just touched upon the case of Pakistan, you know, which announced the tax rates in their 2019 budgets. The next point is the cost effective AMS systems and subsidizations. So I think we all will accept the fact that the financial institutions are incurring huge amount of cost when they're trying to implement the AMS systems. The cost runs into billions of dollars if we see the recent statistics. So I think somewhere governments needs to step in. And if some kind of solution can be worked around where, you know, they can really subsidize the cost which is being incurred by the financial institutions, I think that will really help them not only to reduce their cost, but it will also, you know, encourage them to show their interest for greater financial inclusion. The next point is enhancing framework for mitigating cyber fraud and synthetic identity types. So I think again the same point, you know, when we talk about financial inclusion, we also need to see that why or what are the concerns of the public, you know, of what are common man things, you know, what is a fear in his mind? Okay, the biggest fear is that if I'm saving something, you know, and if, if I lose that saving then what? Okay, we'll come to my rescue. Will the government have proper regulations, you know, who can save my accounts? Are there any laws in place, you know, which can help me to recover those savings? So I think these are certain things which governments really need to work upon. Definitely, there are countries who have worked upon, but I think there is still a lot of scope, you know, to work on these aspects. Just to summarize on the star model, which I have proposed, the key takeaways, you know, are the seven steps. We need to create an advanced public trust in financial services sector. We need to develop an improving in national ID infrastructure. Third is regulatory relaxation in the MLKC process and framework. The fourth is incentivization to contribute in financial inclusion. The fifth is post effective AMS systems and subsidization. The sixth one is enhancing framework for mitigating cyber fraud and synthetic IDD fraud. And the last one is enhanced level of public private partnership. I think if we follow these key seven things from the star model, I'm sure governments and regulators across the globe, you know, will be able to attain their objective of having increased financial effectiveness in a much effective way. What is the call to action for the governments and regulators across the globe? The call to action is to understand that social welfare impact of financial inclusion is significant. We need to realize that to bring in more unbanked and poor people into the formal financial system has its own advantages. Pursuing the enhanced levels of financial inclusion and the combating of money laundering and terrorist financing can and should be viewed as complementary national policy objectives, facilitating growth with equity, reducing income inequality, promoting safe savings along with access to reliable services and making financial transactions easier and ultimately eradicating poverty. So the bottom line is that by fostering the enhanced AML QSC regimes, you know, we can definitely have more financial inclusion. It is definitely a challenge, but it is not that difficult. So I think with this, I conclude my presentation. I again thank the host and the host of the conference, and we'll be happy to take any questions. So, so over to you, Mr. Christine, if you have any questions, we'll be happy to address those questions. That's terrific. Thank you so much, Mr. Shaffer that I want to encourage our viewers to download and read Mr Shah's paper, which is located on the engagement hub you can see the link to it. I want to be mindful of time, but I do have just a couple of questions for you. You mentioned earlier as an example of relaxing some of the regulatory parts of AML KYC simplified due diligence and and you have obviously done a lot of reading about examples of that. And you mentioned Columbia, Egypt, the Honduras. And I'm just curious if you could say a little bit more about what simplified due diligence looks like for those of us who have not are newer to the AML KYC space. Yeah, sure, Mr. Steve, I think that's a very good question. So I think when we talk about the simplified due diligence, okay, the very important fact, you know, which needs to be kept in mind is that, you know, the requirement of, you know, documents by the common man, or in technical terms, we term that them as as a customer of the of the financial institution should be very, very minimal. Okay, so for example, if we see the current customer due diligence and KYC regimes across the globe, whenever, you know, a common man goes to the financial institutions, they have to produce, you know, a lot of documents or proof of identity is one of them, they need to produce their, you know, address to they need to produce their photographs, you know, they need to produce their source of income and so and so forth. So basically the way the global landscape is changing, you know, as I mentioned somewhere, we have, you know, new type of, you know, challenges coming up at the global level. So we have refugees, you know, we have asylum seekers who really don't have, you know, documents or even if they have documents, you know, they may not be accepted by the other countries, you know, where they are moving or migrating or where they are seeking asylum. So the point is, when we talk about simplified diligence, the expectation is that by having a very minimum set of documents, you know, that person should be able to have an association with that bank, you know, that might be, you know, you just ask them a simple photograph, okay, or you just ask them, okay, fine, you give your IDD proof and then you open their bank accounts. So I think that will really go a long way. To give you an example, I think India is again one one example where these dandhan accounts was one major initiative taken by the Indian government. And that really helped, you know, the poor people, you know, to come and open their accounts, they were really brought into the mainstream, you know, of the formal financial system. So I think that's really helped, you know, when you bring the poorest of the poor, you know, people who are, you know, really facing challenges, you know, if they come into the mainstream, definitely it has its own impact, you know, which governments and countries will realize over a period of time. And then for my final question, you mentioned earlier that you believe that financial inclusion should be more holistic to include credit and insurance. I'm curious to hear what role you think the central banks could play, if any, in expanding into the world of insurance. Yeah, again, a very good question. So I think when we talk about the holistic approach we followed by the central banks, you know, I think it is very important to understand, you know, the needs and the role it plays. You just mentioned insurance. Insurance is, you know, one good product which really can help out the common man, you know, in case of its, you know, when there is an emergency. So I think if the central governments across the countries really come up, you know, with such kind of regulations, you know, or changes or something innovative, you know, which really encouraged, you know, the common man to really come and join the formal, you know, financial sector, it will really help them, you know, as of now, there are a lot of challenges. So what is required is that central governments need to really understand. And I think I have mentioned this earlier also, one thing which we need to really understand and really need to ponder that why is it so that a common man, you know, prefers to go to a local money lender, okay, rather than going to a bank, you know, for his normal requirements, you go to rural areas, okay, we have Bangladesh, you know, as an example, we have African countries, we have a lot of South Asia Pacific countries where public at last still prefers to go to, you know, an ordinary sector and that is where the challenge is. So I think if the central banks across the globe really think and sit, you know, that why is it is happening? Is it an issue of trust? Is it an issue of policy? Is it an issue of affordability? Is it an issue of, you know, some kind of apprehensions in terms of, you know, having appropriate accruations and all that? I think once they deliberate that, you know, and come up with, you know, covering or, you know, having a proper control system to cover these things, I think that will really help everyone. It will be a win-win situation at the end of the day. Perfect. Sachin Shah, thank you so much for your presentation today. Thank you. I encourage you again, the full-length paper is available in the Engagement Hub. Please do download it, read it, cite it. Thank you again for your time. Thank you. Thank you, Mr. Stee and have a nice day. You too.