October 27, 2003 News Archive

Board Issues Basel II White Paper
The Board recently issued a white paper titled "The Asset-Correlation Parameter in Basel II for Mortgages on Single-Family Residences" (PDF). Serving as background material for public comments on the proposed new Basel Capital Accord, the paper summarizes research supporting the proposed rulemaking.

Board Issues New Bank Secrecy Act Examination Procedures
In consultation with the Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), Office of Thrift Supervision (OTS), and National Credit Union Administration (NCUA), the Board developed examination procedures designed to help banking organizations implement the new BSA requirements of sections 313, 314, and 319 of the USA PATRIOT Act and to facilitate a consistent supervisory approach among the regulatory agencies. The examination procedures are detailed in SR 03-17.

Section 313 of the Act prohibits banking organizations from establishing, maintaining, administering, or managing correspondent accounts with "shell" banks (e.g., foreign banks that have no physical presence in any jurisdiction). Section 314 of the Act facilitates the sharing of information regarding suspected terrorist financing and money laundering activities between banking organizations and law enforcement agencies and among banking organizations themselves. Section 319 of the Act requires the maintenance of certain records, including records related to the ownership of foreign banks.