Stronger Rules On Anti-Money Laundering And Fund Transfer

The European Parliament voted in favour of the new Capital Requirements Directive (CRD IV). CRD IV incorporates Basel III and consists of a directive and a regulation that include the following measures:

• Capital requirements are being tightened: banks must set aside a relatively higher core capital as a cushion against unexpected losses. Additional capital requirements apply in the form of a capital conservation buffer, the anticyclical buffer, and the systemic risk buffer. The latter does not originate from Basel III.
• Banks must maintain specific capital for a temporary deterioration in the creditworthiness of a counterparty in a derivatives contract.
• An international standard for uniform liquidity rules is introduced