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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
You are invited to ask any question or raise any issue on this thread – just keep it relevant and keep it clean (and relevant to banking or risk management)!