BIS issues "problem bank structure" rules

The Bank for International Settlements (BIS) issued two papers near the end of January aimed at curbing money laundering and fraud by clamping down on problematic banking structures.

The first paper addresses parallel banks, defined as "banks licensed in different jurisdictions that, while not being part of the same financial group for regulatory consolidation purposes, have the same beneficial owners, and consequently, often share common management and interlinked businesses." Such structures are established often to take advantage of tax arrangements, avoid legal restrictions on bank ownership, diversify risk outside unstable countries, or to attempt to "evade