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To get off Basel for a while – Senator Ellison has announced that the AML bill will be delayed until at least mid-June. The longer this goes on the more changes we can expect from the White Paper and therefore the more consultation will be needed when it comes out.
There will be a few big issues here – for the banks' customers the most visible change will be how they have to identify themselves to the bank and whether they need to re-identify themselves at some stage. For the banks, the big issue will be an IT one – how to identify when a customer's behavior changes in a suspicious way.
The BIS seems pretty happy that the various QIS have given them a correct result, with the scaling factor remaining at 1.06. This was the expected result, but I do not think the Americans will derive much comfort from it and they are likely to maintain their cautious approach to capital reductions under the new Accord
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